CNN: 47% will pay no federal income tax

[Hubbs]

You can't squeeze blood from a turnip. Subtract the taxes those in the bottom portion of the income DO pay from their income and compare it to the cost of living in their area.

Or ignore this.

Consider that wealth disparity in the US is now wider than it was in the 1920's. The worst in a 100 years (during which the US became the super power). The top 10% of income earner in the US now earn 50% of all income. The bottom 90% split the remaining 50%..

Or ignore that as well.

...which is why these two graphs:

...are no coincidence.

[SnyderShrugged]

The tax rate increases progressively, hence the term. It is not progressive in the sense of "progress." Maybe that will make a little bit more sense in terminology.

I know, That wasnt what I was asking.

I was asking why it's progressive only up to a certain income level and then levels off at the cieling. I guess a better way to ask it is why does someone who makes $500k a year pay the same rate as someone who earns $10 million?

It's not really a progressive structure with the cieling.

[Baculus]

I know, That wasnt what I was asking.

I was asking why it's progressive only up to a certain income level and then levels off at the cieling. I guess a better way to ask it is why does someone who makes $500k a year pay the same rate as someone who earns $10 million?

It's not really a progressive structure with the cieling.

Ah, gotcha. I assume that the wealthy in this country were able to lobby Congress to prevent this tier from changing the percentages at the higher income levels. (Warren Buffet once famously said that he pays less taxes than his secretary.)

[Larry]

I was asking why it's progressive only up to a certain income level and then levels off at the cieling. I guess a better way to ask it is why does someone who makes $500k a year pay the same rate as someone who earns $10 million?

He doesn't.

1) Assuming that we're comparing earned income vs earned income. (Which is by far the exception.) The $500K guy pays 33% on $400K, and lower rates on the other 20% of his income. The $10M guy pays 33% on 99% of his income.

2) But in reality, the $10M guy is almost certainly getting a large portion of ihs income in some vehicle other than salary. Most of his income is coming from Capital Gains or something similar. The $10M guy is only paying 15% tax on the money that comes in through that channel.

The $10M guy is paying a lower percentage than the $500K guy. Likely, he's paying half the percentage.

(During the '04 election, the GOP were bashing Kerry because his wife was one of the Evil Rich, and she wasn't paying enough taxes, because she was only paying something like 13% of her income as taxes. They failed to mention that the main reason why her taxes were so low was because more than half of her income was from tax-free municipal bonds.)

(Warren Buffet once famously said that he pays less taxes than his secretary.)

He pays a smaller percentage. Quite a bit smaller. But that's because his secretary's income comes from "salary", and his comes with lots of different labels on it.

One of those "things" about our tax system is that the government grabs the biggest chunk from people who earn their money. If it's "unearned" then they don't tax you nearly as much.

[twa]

so we should strive to make ours end too?

Might be on the way

interesting chart

For Whom Do The 47% Who Pay No Income Tax Vote?

http://taxprof.typepad.com/taxprof_blog/2009/10/who-do-those.html

[Midnight Judges]

Might be on the way

interesting chart

For Whom Do The 47% Who Pay No Income Tax Vote?

http://taxprof.typepad.com/taxprof_blog/2009/10/who-do-those.html

As they should. Republicans generally don't treat that income bracket so well.

Contrarily, your chart also indicates folks making over $200K also favored Obama, although to a lesser extent. Rather selfless and realistic of them IMO.

[twa]

As they should. Republicans generally don't treat that income bracket so well.

Then the Dems should expect to pick up a number of seats from all the newly unemployed eh?

[Hubbs]

As they should. Republicans generally don't treat that income bracket so well.

Contrarily, your chart also indicates folks making over $200K also favored Obama, although to a lesser extent. Rather selfless and realistic of them IMO.

I'd want to see the chart for a few other elections, but it's definitely interesting.

[Larry]

Then the Dems should expect to pick up a number of seats from all the newly unemployed eh?

I can think of lots of possible reasons why not.

Like maybe a very large portion of those unemployed voted for Obama the first time?

[jnhay]

If you take the income taxes I paid in '08 and gave it to somebody as income they would be put in the second highest tax bracket. Obviously I'd vote to get rid of Income Tax and replace it with a Consumption Tax.

DAMN. I'd love to say that.

[Thiebear]

I always said the percentage doesnt really matter.

Teresa Heinz Kerry paid more in taxes in 1-2 years than i will in my lifetime...

She also employs drivers/maids/pilots etc...

I have no issue with a cap on what is taken.. Though at this point in history i would say were not giving enough.

Fight to the death not to print more money and keep some of the crazy crap off the table.

Fight to the death not to allow the dollar to fall, and pay more in taxes/services/vats

Take the Stimulus not spent and put it back in....

Do what needs to be done to get the funny money back off the streets.

do a 10% VAT just for the deficit (NOT GENERAL FUND).

and the transparency that was promised.

[Midnight Judges]

Then the Dems should expect to pick up a number of seats from all the newly unemployed eh?

I don't think so. Dems will likely lose seats in 2010, if for no other reason than the political pendulum swings.

[Seabee1973]

I wouldn't have recommended the route that you took for your filing. You may end up owing money at the end of the year if not enough is withheld.

It all depends upon how much you earn and if you are above or below the poverty line. Also, even those who do not pay federal taxes still have to pay payroll taxes, state taxes, and social security.

I am not a tax expert, but this just my .02 on the matter.

Actually the way he is doing it unless he messes up he should not pay taxes at the end of teh year I file 1 and get more in my paycheck and have to sweat it every year to see if owe

[DiscoBob]

Whatever the case is, the tax brackets, deductions, and credits should not preclude any more than 15%-20% of the population from owing any taxes. The situation as it stands today gives the majority too much control over the minority, in that they can impose their will indiscriminately on high wage earners through their voting.