Percent of income tax filers who pay no US income taxes doubles from 1990 from 21% to 41%

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    Jul 26, 2012 3:11 PM GMT
    And yet there remain those who believe the rich should pay more taxes. For them, it's not about helping the poor get wealthier but ensuring the rich get poorer.

    http://taxfoundation.org/article/tax-equity-and-growth-nonpayers

    - In 2010, 41 percent of all tax returns filed had no income tax liability. This represents over 58 million income tax filers.

    - Nonpayers have grown substantially over the last two decades. In 1990, only about 21 percent of returns had no tax liability, about half of what it is today.

    - The expansion of tax credits is the primary driver of the increased number of nonpayers. The budgetary cost of tax credits reached $224 billion in 2010.

    - Though most nonpayers of the income tax are generally low income, the number of nonpayers in middle income categories has grown. The median income of nonpayers has increased by 40% over the last 9 years.

    - The threshold at which a typical married couple with two children will likely be a nonpayer is now $47,000.
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    Jul 26, 2012 6:30 PM GMT
    BareMusculine saidWhat do you suggest?


    A flat(ter) tax system, simplification of the tax code and elimination of almost all tax credits.
  • TroyAthlete

    Posts: 4269

    Jul 26, 2012 9:05 PM GMT
    riddler78 saidAnd yet there remain those who believe the rich should pay more taxes. For them, it's not about helping the poor get wealthier but ensuring the rich get poorer.

    http://taxfoundation.org/article/tax-equity-and-growth-nonpayers

    - In 2010, 41 percent of all tax returns filed had no income tax liability. This represents over 58 million income tax filers.

    - Nonpayers have grown substantially over the last two decades. In 1990, only about 21 percent of returns had no tax liability, about half of what it is today.

    - The expansion of tax credits is the primary driver of the increased number of nonpayers. The budgetary cost of tax credits reached $224 billion in 2010.

    - Though most nonpayers of the income tax are generally low income, the number of nonpayers in middle income categories has grown. The median income of nonpayers has increased by 40% over the last 9 years.

    - The threshold at which a typical married couple with two children will likely be a nonpayer is now $47,000.


    #assumptionfail

    How many of those tax returns filed with no income tax liability belonged Mitt Romney and his rich friends?

    Nice try at implying that the poor pay no taxes, but that argument went out the window when we found out that out-of-touch, super-rich sharks like Mitt Romney are paying ZERO taxes in some years. For you, it's not about helping the poor get wealthier, it's about scapegoating the poor and ensuring the rich get even richer and avoid tax liability altogether while the rest of us pay up the nose.

    We know you Rethuglicans hate poor people, but at least try to hide it. It's an election year.
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    Jul 27, 2012 12:15 PM GMT
    BareMusculine said
    riddler78 said
    BareMusculine saidWhat do you suggest?


    A flat(ter) tax system, simplification of the tax code and elimination of almost all tax credits.


    Who would benefit the most and the least from this tax system?


    I think the US would generally benefit the most - while my guess is that the US tax system would still be highly progressive where the rich overwhelmingly paid a lot more of the overall taxes.

    Generally speaking in many cases my guess is that the rich would end up with a higher marginal tax rate while the poorest would still pay nothing and the middle class would pay something.

    From a business perspective it would spur growth because you would be encouraging greater productivity while reducing playing favorites of specific companies or industries (e.g. GE has worked with Congress to pass specific tax breaks that have benefited them so much so that they have gotten money back despite earning a significant profit). The spill over effects would be more jobs as well.

    Even the simplification of the tax code by this measure would mean a massive amount of time saved in preparing your tax returns and reducing the need of inefficient spending in areas of law and accounting that can be redirected in ways that help individuals add more and create more in the world. That, I think, is a good thing.
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    Jul 27, 2012 12:53 PM GMT
    BareMusculine said
    riddler78 said
    BareMusculine said
    riddler78 said
    BareMusculine saidWhat do you suggest?


    A flat(ter) tax system, simplification of the tax code and elimination of almost all tax credits.


    Who would benefit the most and the least from this tax system?


    I think the US would generally benefit the most - while my guess is that the US tax system would still be highly progressive where the rich overwhelmingly paid a lot more of the overall taxes.

    Generally speaking in many cases my guess is that the rich would end up with a higher marginal tax rate while the poorest would still pay nothing and the middle class would pay something.

    From a business perspective it would spur growth because you would be encouraging greater productivity while reducing playing favorites of specific companies or industries (e.g. GE has worked with Congress to pass specific tax breaks that have benefited them so much so that they have gotten money back despite earning a significant profit). The spill over effects would be more jobs as well.

    Even the simplification of the tax code by this measure would mean a massive amount of time saved in preparing your tax returns and reducing the need of inefficient spending in areas of law and accounting that can be redirected in ways that help individuals add more and create more in the world. That, I think, is a good thing.


    So our tax code would affect other countries?


    Absolutely - and this is simply a recognition of the fact that the US has been a global economic leader and superpower and that there are spill over effects. That said, for this specific statement, I more meant that the US in general would benefit.