Rantings and tirades of a frustrated economist.
Would someone please explain to me where this "bottom third of income pay no taxes" spiel keeps coming from? Last year I worked my ass off seven days a week for minimum wage (regrettable, but if you have student loan payments you have to take the first job that comes along, because you don't get bailed out for defaulting), grossing less than $20K, and even after payroll deductions from two separate employers Uncle Sam still put a gun to my head and demanded an additional $400. Between federal, state, and local taxes I spent nearly six large only to get told I didn't pay anything? If only "the bottom third" aren't paying taxes, that means that there must be at least an hundred million Americans doing worse than myself, which would be the worst economic indicator I can imagine.
I find it interesting that the phrase next to the brace says:"Bottom three groups amount to 60% of taxpayers."As you point out, most of them don't really pay income taxes, do they? Unless "paying taxes" includes writing a "0" in the block on the 1040 EZ that says, "Tax."It's vacuously true.
"if the bottom third of income earners don't really pay taxes..."Not true. The bottom 30% of US income earners contribute about 6% of total taxes, which is fair, as they earn about 6% of the total income pie. Google 'contribution by poorest 30%' for a handy chart.As an economist, you really should have known better.As someone who posted a related chart on this blog just last month, you REALLY should have known better.
I don't know what kind of crack anonymous has been smoking.According to a 2008 report by Kiplinger, based in 2006 IRS data, the bottom half of income earners ($32K) had 12.5 percent of all income and paid only 2.99 percent of all income taxes. The bottom two quintiles (40 percent) clearly paid much less than that.And we're not even taking into account taxes net of transfer payments which puts many people in the lowest quintile at zero or even negative taxes paid.As to the first guy's question, for a single person earning $35K, you'll pay about $3400 in taxes. If that same person is married, taxes drop to $2300. That's not 'nothing' to that person, but the combined taxes of him and people like him couldn't pay to keep the lights on in federal government offices for one day. My two explanations are what we mean when we say the lowest 40 percent doesn't pay taxes.
Dumb ass liberals.Reading...it's fundamental.http://www.taxfoundation.org/research/show/1410.htmlNow thinking! That will be even harder for you.
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