‘Misconceptions and Realities About Who Pays Taxes’
I posted this last Sept. 18th.
I know that with the release of Ryan’s budget, we’ll hear that wonderful refrain of ‘skin in the game’ from the Republicans.
After all…..Republicans tell us ‘poor people don’t pay taxes’.
Turns out they do.
Which begs the question just how much poorer do Republicans want the poor to be?
‘Tax Policy Center data show that only about 17 percent of households did not pay any federal income tax or payroll tax in 2009, despite the high unemployment and temporary tax cuts that marked that year’.
‘In 2007, a more typical year, the figure was 14 percent. This percentage would be even lower if it reflected other federal taxes that households pay, including excise taxes on gasoline and other items’.
‘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.’)
‘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’.
‘ 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’.
‘Moreover, even these figures greatly understate low-income households’ total tax 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.
From : http://www.cbpp.org/cms/index.cfm?fa=view&id=3505