Tuesday, April 21, 2015

Yes, You Are Paying Way More in Taxes Than The Mooching Rich Are Paying

Because state income tax rates are hugely regressive (in Kentucky, billionaires pay the same 6 percent as do families earning $50,000 per year), because the flat sales tax takes a much greater percentage of income of the poor and working people, and because the rich pay no social security or medicare taxes on income above $118,000, the full burden of taxes in this country falls on those least able to pay it.

And G.I.LuvMoney's claim about the "47 percent who pay no taxes"?  Those are the 47 percent who earn so little - less than $20,000 per year - that they don't qualify for federal income taxes.  In every other kind of tax however - payroll (social security and medicare), property, sales, gas and state income taxes - they pay far more of their income than do the mooching rich.

Via Lawyers, Guns and Money:

Regressive tax codes:

Second, it ignores the effect of state and local taxes, which fall disproportionately on the working and middle classes. The difference is shown by the latest annual report on “Who Pays Taxes in America,” released last week by Citizens for Tax Justice. (Hat tip to Josh Harkinson of Mother Jones.)
“Contrary to popular belief,” CTJ finds, “when all taxes are considered, the rich do not pay a disproportionately high share of taxes.”
CTJ shows that combined local, state and federal taxes produce a system that more resembles a flat tax than a progressive tax: In 2015, the top 1% will pay 32.6% of their income in taxes, while those in the 60th-80th percentile (with average income of $81,000) pay 30.4% and the next highest 10% (average income of $125,000) pay 32.1%. Overall, the bottom 99% pay 29.8% of their income in taxes, a ratio not much smaller than the top 1%.

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