Who pays — and who doesn’t pay — income taxes
The Tax Policy Center has released its latest statistics about who pays — and who does not pay — federal income taxes. According to its numbers, 46.4 percent of “tax units” in America will pay no income tax this year.
More than half of those non-paying units make less than $16,812. More than 80 percent make less than $33,542. Some will no doubt focus their outrage on those lower-income folks, but I’m more intrigued by the fact that 3,000 “tax units” with incomes above $2.18 million paid no income tax. All in all, 446,000 “tax units” with incomes above $103,465 paid no income tax on that money, a figure that includes capital gains taxes.
Now let’s put that in context, historical and otherwise.
First, personal income taxes account for just 44 percent of federal revenue. Payroll taxes account for 37.1 percent of revenue this year, and those taxes are paid by almost all of these “tax units” who don’t pay income taxes, with the exception of those whose main income is Social Security, pensions or investments.
Second, while the percentage of revenue raised through the personal income tax has remained relatively stable since World War II, the mix of revenue from other sources has shifted noticeably. Compared to 60 years ago, the payroll tax has tripled in importance as a revenue source, while the corporate income tax has fallen by two-thirds.
Let the call to raise taxes on the poor, the elderly on fixed income and lower-income earners begin.
– Jay Bookman
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720 comments Add your comment
oldguy
June 29th, 2011
5:18 pm
As I stated yesterday…..I can’t be racist because I only hate Obama’s white half!!
Fred
June 29th, 2011
5:23 pm
Gee Oldguy, President Bush didn’t have a veto pen?
oldguy
June 29th, 2011
5:24 pm
Hey Fred,
I saved 20 jubs today!! I had lunch at S and W Cafeteria so I saved the lineworkers jobs, the kitchen workers jobs, and the tableclearers jobs. SEE I am a stimulus package all by myself!!
Fred
June 29th, 2011
5:27 pm
Woodstock Mike? Are you like 6 or something or just unaware of History? THe Chicago Gov’t has been one of the most corrupt in the nation for at LEAST 150-200 years. THAT is Obama’s fault lol? And President bush “caused” Hurricane Katrina and allowed the levies in New Orleans to be in an abysmal state of disrepair too right?
oldguy
June 29th, 2011
5:27 pm
Why would he veto it, only you thought it was a corporate welfare bill! Remember “Tax cheat” Timmy G thought it saved the economy, the country, the world, civilization itself!
Joe Mama
June 29th, 2011
5:28 pm
Mike — I thought he was from Kenya. Can’t y’all make up your MINDS? (laughing)
Fred
June 29th, 2011
5:28 pm
There ya go oldguy. You are a life changer. Gives you a warm fuzzy and a little bit of a woody doesn’t it?
oldguy
June 29th, 2011
5:31 pm
Fred,
Last time I checked crime was down in NO; so the hurricane actually did a favor for the city! And look at all that new “Green” wetland it created!! A Win-Win situation!
Fred
June 29th, 2011
5:31 pm
sorry oldguy, i can’t keep up with the “clever” little names that you whacked out fanatics (left and right) make up for your “opponents” for their evil deeds (real as well as perceived). I don’t know who “Tax cheat” Timmy G, is.
Fred
June 29th, 2011
5:32 pm
no sh…… kidding oldguy. I just wish so many of the criminals hadn’t landed here………
oldguy
June 29th, 2011
5:35 pm
Time to go save some more jobs with my government welfare check (SS)(big macks anyone?).
oldguy
June 29th, 2011
5:37 pm
Roger the landed here Fred!!
oldguy
June 29th, 2011
5:39 pm
p.s. I get better political advice on Spongebob than anywhere else!!
Curious Observer
June 29th, 2011
6:42 pm
But hey….we created 562,000 jobs at the cost of $1.4 Million/job. Great job.
That stimulus funded the entire payroll of the Georgia state government for the entire fourth quarter and part of the third–to keep jerks like you from seeing a state tax increase. Your Ol’ Sonny wasn’t terribly thrilled about letting you know that, and now you do. A whole bunch of states would be in a lot more financial trouble if not for the stimulus. You show a total lack of class and a partisan bent in ascribing all the stimulus to job creation.
Bud Wiser
June 29th, 2011
7:28 pm
The best “shovel ready” job that this moron for a president we have is to have someone shovel the same old sh*t that pours out of his mouth.
Talk about job security…………..
CLARENCE SWINNEY
June 30th, 2011
6:08 pm
END OF EMPIRE?
ROME SPAIN HOLLAND ENGLAND AMERICA
INEQUALITY–OVER EXTENSION WORLDWID—E DEBT DEBT DEBT
1945-1980 GREAT YEARS OF HIGH EQUALITY RANKING ON GINI SCALE
TODAY–FOURTH FROM BOTTOM OF 31 RICH NATIONS
WHY? HOW?
REDISTRIBUTION OF WEALTH –
REAGAN 60% TAX CUT FOR TOP 1%
REAGAN INCREASE SPENDING 80%
REAGAN INCREASE DEBT 180%
BUSH HUGE TAX CUT FOR TOP 1%
BUSH INCREASE SPENDING 92%
BUSH INCREASE DEBT 112%
THREE REPUBLICAN PRESIDENTS INITIATED OUR INVOLVEMENT IN 10 FOREIGN CONFLICTS
1945-1% OWN 30% ALL FINANCIAL WEALTH
1980-1% ON 20% ALL FINANCIAL WEALTH
2009-1% OWN 43% ALL FINANCIAL WEALTH
LIKE BANANAS?
CLARENCE SWINNEY
June 30th, 2011
6:19 pm
31 RICH NATIONS AMERICA IS NEXT TO LAST IN PERCENT OF GDP IN REVENUE TAKEN BY THE BY FEDERAL GOVERNMENT
Since 1980, we became world leader in Spend and Borrow from world’s largest creditor to largest debtor.
Twenty years of so-called Conservative Leadership.
Reagan set off the bomb by presenting 8 budgets which spent more in 8 than we had spent in prior 50 years. More in 8 than in 50. 7079 TO 6066.
Conservative spin is–Oh! Congress did it. Sorry! Congress returned his 8 with fewer dollars. Oh! Inflation adjusted dollars.Sorry! from 1948 to 1989 in 1988 dollars Reagan spent 2.4 dollars a year for each dollar spent in other 32 years. Sorry! He first big Spend & Borrow in peace time.
Big taxer. Raised taxes 11 times and cut 4 times. Conservative?
Darko
July 1st, 2011
8:04 am
Jay said:
“Most of them DO have skin in the game, Leg Lamp. That “skin” is merely acquired through the payroll tax rather than the income tax, a fact that you and others for some reason studiously ignore.”
No, that’s why certain “income” tax credits are refundable beyond the amount of income tax paid, such as the Earned Income Tax Credit and Child Tax Credit. With those credits, it is very possible to have such a large refund of income tax beyond any tax due that it more than offsets any payroll taxes withheld, meaning there is a significant number of people with a zero or negative tax burden.
Republicans Say They
July 5th, 2011
11:03 am
[...] it changed because they would lose control and would not be able to use it as a campaign point Who pays The Tax Policy Center has released its latest statistics about who pays — and who does not [...]
Mark
July 5th, 2011
3:11 pm
All very interesting and relevant points which are certainly worth reading. That being said, my wife and I pay taxes, a big number for what it’s worth and we’re proud to live in a Country that provides so much opportunity. I belive that the tax code is obviously broken when some folks pay no tax, not even one dollar and some folks earning extremely good incomes pay no tax either. The tax regulations are far too complex for the average American to understand and thats just wrong.
I belive evryone should have skin in the game but I have a very hard time understranding how 46%+ of the Federal revenue stream can be so fraught with errors, imbalances and complexity. There should be no loop holes, not for anyone, personal or corporate, period. We need to get our act together before it’s too late.