40 % of this country pay little federal tax

[ruffryder]

Talking Federal INCOME tax here.

Who are all these people? How many of them are retirees? How many of them are poor? How many of them are single parents? How many are our grandparents?

I highly doubt this number is the amount of people on welfare as there is a difference between not paying taxes (netting out zero with taxes paid vs. tax refund) and getting a net payment.

I have seen this number many times (between 30 - 40 %) but I have yet to see an demographics as to who or what this group consists of.

Anyone have any information? I searched a while ago and came up with zilch, but my curiosity has grown again.

Thanks

 

[powderbound]

Not really. 40% of americans pay no federal income tax. They all pay federal taxes.

Gasoline tax -
Corporate tax - Like it or not every time a company gets taxed it is just passed on to the consumer. From raw material to finished product, many items get taxed several times over. Consumer pays.
Capital gains- If they have any stocks etc in the case a retiree
Special taxes-- cigarettes and alcohol
Import taxes

I am sure there are more and more to come

 

[ruffryder]

Not really. 40% of americans pay no federal income tax. They all pay federal taxes.

Gasoline tax -
Corporate tax - Like it or not every time a company gets taxed it is just passed on to the consumer. From raw material to finished product, many items get taxed several times over. Consumer pays.
Capital gains- If they have any stocks etc in the case a retiree
Special taxes-- cigarettes and alcohol
Import taxes

I am sure there are more and more to come

Correct. Thanks for the clarification. I am talking about federal INCOME tax. Sorry for the confusion.

 

[Wolfrun]

I would bet that the largest percentage of non payers don't even file and never have. That could be a large group. Welfare people, young people, college kids and others that move around the country a lot. A lot of minimum wage jobs in all parts of the country wouldn't meet the minimum, at least till 09, and even payroll taxes would be refunded. Middle age, I really don't know why other than the immigrant situation. Older People would generally pay taxes because most of Social Security is taxable, at least mine is. That is as much as I can figure out and I have run payrolls and all for years.

 

[redlineguy]

If you make under a $$$ amount you don't pay.



ruffryder 5% of the People pay about 65% of the Taxes Thats how the Lib's like it.








.

 

[MPS]

ruffryder 5% of the People pay about 65% of the Taxes Thats how the Lib's like it.

Oh goodness...our token libby won't like that answer.

 

[Ollie]

http://taxes.about.com/od/2008taxes/qt/2008_tax_rates.htm
Those are the tax rates.
Now when you figure in rebates and things like child tax credits, it equats to 40+% get back as much or more than they pay in.
Thus, 40% of americans don't pay federal income tax.

 

[ruffryder]

http://taxes.about.com/od/2008taxes/qt/2008_tax_rates.htm
Those are the tax rates.
Now when you figure in rebates and things like child tax credits, it equats to 40+% get back as much or more than they pay in.
Thus, 40% of americans don't pay federal income tax.

I get the why and the how. I am looking for a demographic break down of who makes up the 40%, the who.

Retirees on social security, do you net zero for income taxes? Only if you have no other income besides social security?

 

[redlineguy]

Our Tax code is soooooooooooooooooooooooo F ed UP too!!!


U make $10 to much and you lose another 5%.... Sick













.

 

[Hardass]

What gets me are the comercials where there saying they owed 4 million and only had to pay 1 million and so on, is that real?

 

[ruffryder]

Our Tax code is soooooooooooooooooooooooo F ed UP too!!!

U make $10 to much and you lose another 5%.... Sick

Isn't that only on the 10 above the limit (too much). You loose an extra 50 cents by making $10 too much. Would you rather it be a non-linear relationship instead of discrete steps?

 

[Ollie]

Isn't that only on the 10 above the limit (too much). You loose an extra 50 cents by making $10 too much. Would you rather it be a non-linear relationship instead of discrete steps?

I would rather it be a flat tax with zero loop holes.
If you make 1 dollar, you pay "X" percent.
If you make 10 million, you pay the exact same percentage "X"

 

[Ollie]

I get the why and the how. I am looking for a demographic break down of who makes up the 40%, the who.

Retirees on social security, do you net zero for income taxes? Only if you have no other income besides social security?

The only thing I can find is quotes of 40 - 42%.
I can't find a financial, age or gender break down.

 

[ruffryder]

I would rather it be a flat tax with zero loop holes.
If you make 1 dollar, you pay "X" percent.
If you make 10 million, you pay the exact same percentage "X"

Yah, but that tax is actually regressive, as people less off end up paying more tax for basic needs (as a percentage) then better off people. It would make it much much much simpler your way though.

The only thing I can find is quotes of 40 - 42%.
I can't find a financial, age or gender break down.

Weird isn't it?

 

[woodzy]

I have found very similar threads to this in other forums I've been searching. People asking for the exact same thing.. You'd think it would be easy to find...

 

[woodzy]

O and BTW... You two are getting along entirely too well. It's scaring me.

 

[Ollie]

Yah, but that tax is actually regressive, as people less off end up paying more tax for basic needs (as a percentage) then better off people. It would make it much much much simpler your way though

How?
For ease of example, lets say the flat tax is 10%.

If you make 20k a year, you pay 2k in taxes.
If you make 200k a year, you pay 20k in taxes.

10% is 10%.
Same hardship on both.
The fact the guy making 200k works harder or is more skilled isn't his fault and shouldn't be made a bad thing. If you want more disposable income, get a better job or work 2 jobs. It promotes hard work and dedication as apposed to the current system that denigrades hard work and dedication by taxing it to death.

 

[ruffryder]

How?
For ease of example, lets say the flat tax is 10%.

If you make 20k a year, you pay 2k in taxes.
If you make 200k a year, you pay 20k in taxes.

10% is 10%.
Same hardship on both.
The fact the guy making 200k works harder or is more skilled isn't his fault and shouldn't be made a bad thing. If you want more disposable income, get a better job or work 2 jobs. It promotes hard work and dedication as apposed to the current system that denigrades hard work and dedication by taxing it to death.

I was thinking sales tax... You are correct.

 

[ruffryder]

O and BTW... You two are getting along entirely too well. It's scaring me.

I licked a frog.....

 

[KWB]

I have a decent job with good income but all said and done I paid about 2% in federal income tax last year. SS and other taxes is another story

I paid almost 10% of my income for my property taxes on the house.

To the flat tax idea I generally support the concept (even though I would likely pay more) but it needs to be regionally adjusted for a standardized cost of living and 0% (or something very small) below that level and then flat above that. What that does is allows everyone to have a chance to take care of themselves to some base level first then contribute to the good of the society. For example the first 30K is tax free (or very low % so that everyone pays something) then every penny after that is taxed the same.