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The Myth of "51% do not pay taxes"


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Misconceptions and Realities About Who Pays Taxes — Center on Budget and Policy Priorities

 

Most of the people who pay neither federal income tax nor payroll taxes are low-income people who are elderly, unable to work due to a serious disability, or students, most of whom subsequently become taxpayers. (In years like the last few, this group also includes a significant number of people who have been unemployed the entire year and cannot find work.)

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from the article

 

Moreover, low-income households as a group do, in fact, pay federal taxes. Congressional Budget Office data show that the poorest fifth of households paid an average of 4.0 percent of their incomes in federal taxes in 2007, the latest year for which these data are available — not an insignificant amount given how modest these households’ incomes are; the poorest fifth of households had average income of $18,400 in 2007.[6] The next-to-the bottom fifth — those with incomes between $20,500 and $34,300 in 2007 — paid an average of 10.6 percent of their incomes in federal taxes.

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continuing:

 

# Moreover, even these figures greatly understatelow-income households’ totaltax burden because these households also pay substantial state and local taxes. Data from the Institute on Taxation and Economic Policy show that the poorest fifth of households paid a stunning 12.3 percent of their incomes in state and local taxes in 2011.[7]

# When all federal, state, and local taxes are taken into account, the bottom fifth of households pays about 16 percent of their incomes in taxes, on average. The second-poorest fifth pays about 21 percent.[8]

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The leading study of this issue found that the majority of households that receive the EITC get it for only one or two years at a time, such as when their income drops due to a temporary layoff, and pay federal income tax in most other years. The study examined the filers who claimed the EITC at least once during an 18-year periodand found that they paid a net of several hundred billion dollars in federal income tax over that period.[10] This finding shows that while some households will receive refundable tax credits in a given year whose value may exceed their payroll tax liability, they pay significant federal income taxes over time in addition to the payroll and state and local taxes they pay each year.

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These people have skin in the game and are contributing members of the society. If you read the posts here and listen to FOX you would think that all of them are leaches. The bigger fact is that those who are not paying are either elderly, disabled, or students, not the working poor, AND people move in and out of this category. I may not pay one year because of my employment status, but the fact is I will pay at some other time, AND if I am a student I will probably pay a lot over my lifetime.

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These people have skin in the game and are contributing members of the society. If you read the posts here and listen to FOX you would think that all of them are leaches. The bigger fact is that those who are not paying are either elderly, disabled, or students, not the working poor, AND people move in and out of this category. I may not pay one year because of my employment status, but the fact is I will pay at some other time, AND if I am a student I will probably pay a lot over my lifetime.

 

Just posing the question.....maybe if you don't pay federal income taxes, you shouldn't be able to vote? That makes sense to me. Why should those who don't pay any in vote to continue to force me to pay for them? Just askin'?

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Just posing the question.....maybe if you don't pay federal income taxes, you shouldn't be able to vote? That makes sense to me. Why should those who don't pay any in vote to continue to force me to pay for them? Just askin'?

 

Agreed. You should also have to own property and keep your wig perfectly powdered.

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Just posing the question.....maybe if you don't pay federal income taxes, you shouldn't be able to vote? That makes sense to me. Why should those who don't pay any in vote to continue to force me to pay for them? Just askin'?

 

Historically speaking wasn't that the way it was at one point.

 

Off the top of my head there were some restrictions to voting at one point I believe:

 

1) Had to own Land.

2) Had to pass a literacy test or other kind of test to become registered.

 

Probably some others but I think they were often abused by political machines to control the input of the voting populace if memory serves.

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Just posing the question.....maybe if you don't pay federal income taxes, you shouldn't be able to vote? That makes sense to me. Why should those who don't pay any in vote to continue to force me to pay for them? Just askin'?

 

So do you get more of a vote if you pay more income taxes?

 

Why does it have to be federal income taxes? As shown in this thread and in the link nearly every one pays some sort of federal tax.

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So do you get more of a vote if you pay more income taxes?

 

Why does it have to be federal income taxes? As shown in this thread and in the link nearly every one pays some sort of federal tax.

 

Not more of a vote just a vote.

 

Because you have to be making a certain amount of money to pay federal income tax that is why that would be a good place to start.

 

I can say I want you to fix me dinner every night. Why should you if I don't provide the food, or pay for your services. Makes no sense our current system.

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So do you get more of a vote if you pay more income taxes?

 

Why does it have to be federal income taxes? As shown in this thread and in the link nearly every one pays some sort of federal tax.

 

Last time I checked income taxes made up about 85% of the federal government's revenue stream when you take out payroll taxes, which of course are a whole different tax. Those other federal taxes that you speak of are more often in the form of excise type taxes that are used for specific purposes.

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