I need HELP Regarding Tax Cuts for a Dittospank...

[LaydeeBug]

It is spilling over into my arizona racist law discussion.

What % of Americans received a tax cut under the Obama Administration? Please, please help me ruin a dittospank. My cheesecake didn't turn out all that great (My first try) and this will help me vent my frustration.

[Ian David]

1. 95%

Tax Day Fact Check: Most Americans Got A Tax Cut This Year
http://www.huffingtonpost.com/2010/04/15/tax-day-2010-protesters-i_n_538556.html

But Glenn Beck says that if you're a Republican, and you get a refund or a stimulus check, it's a trap to get you audited, so you should return it to The IRS un-cashed.

Glenn Beck Scams Woman Out of $800
http://www.bobcesca.com/blog-archives/2010/04/glenn_beck_scam.html

[LaydeeBug]

2. This ass is tryna tell me that 50% of Americans don't pay taxes. nt

[Ian David]

3. 47% don't pay federal income tax, but 100% pay taxes.

When headlines scream "Nearly half of Americans pay no taxes," pundits smell blood in the water. Stories on a recent report from the Tax Policy Center finding that 47 percent of Americans owe no federal income tax said exactly that, leading to a spate of blogs and columns decrying a tax code that could allow such a miscarriage of financial justice.

Upon closer inspection, the report proved much less incendiary than reported by the Associated Press and various right-wing blogs. As the New York Times' David Leonhardt noted: "The 47 percent number is not wrong. <...> But the modifiers here — federal and income — are important. Income taxes aren’t the only kind of federal taxes that people pay. There are also payroll taxes and investment taxes, among others. And, of course, people pay state and local taxes, too."

Leonhardt went on to succinctly summarize the rationale behind wealthy Americans having a significantly higher tax rate.

There is no question that the wealthy pay a higher overall tax rate than any other group. That is an American tradition. But there is also no question that their tax rates have fallen more than any other group’s over the last three decades. The only reason they are paying more taxes than in the past is that their pretax incomes have risen so rapidly — which hardly seems a great rationale for a further tax cut.

Leonhardt is far from alone in his analysis. A chorus of bloggers, columnists and late-night satirists dissected the Tax Policy Center's report and offered their take on the federal income tax-less masses.

More:
http://www.theatlanticwire.com/opinions/view/opinion/47-Percent-Dont-Pay-Taxes-No-Big-Deal-3230

See also:

Many illegal immigrants pay up at tax time
http://www.usatoday.com/money/perfi/taxes/2008-04-10-immigrantstaxes_N.htm

Illegal Immigrants are Paying a Lot More Taxes Than You Think
http://reason.org/news/show/122411.html

[LaydeeBug]

14. This is spectacular! THANK YOU!!!

I'm bookmarking this thread. :hi:

[Ian David]

15. You're very welcome. Also, THIS might help...

Published on Tuesday, July 21, 2009 by CommonDreams.org
The Great Tax Con Job
by Thom Hartmann
http://www.commondreams.org/view/2009/07/21

And somewhat ancillary to the argument at hand...

Thursday, April 15, 2010
"Two Santa Clauses" by Thom Hartmann
Thom Hartmann is the author of "SCREWED: The Undeclared War on the Middle Class"
http://damon-whatthehellishethinking.blogspot.com/2010/04/two-santa-clauses-by-thom-hartmann.html

[Statistical]

4. Almost half of Americans pay no FEDERAL INCOME taxes.

That is not the same thing as no taxes.

Federal Income Taxes + Payroll Taxes (Medicare & SS) + State Incomes Taxes + Sales Taxes + Excise Taxes (gasoline, guns, tobacco) + Use Taxes (driver's license, registration, Universal Service Fee, etc) + Real Estate Taxes + Estate Taxes = TOTAL TAXATION.

The rich loves talking about federal income taxes as if they are the be and end of all of taxation. In reality they are a small minority.

So 50% of Americans pay none of this small tax (in terms of total taxation) and pay a lot in all the other categories.

[proudohioan]

5. And if almost half of Americans pay no Federal income taxes.....

what does that say about the gross income of almost half of Americans?

Your income has to be pretty low to not have any Federal income tax obligation....

[Lone_Star_Dem]

6. Exactly the point!

It's good to see someone who gets it. I field this argument all to often and it surprises me as to how many people don't get that fact.

Also, the poor pay a higher percentage of their income in other taxes than do the wealthy. If you keep it all in context the fact that the lowest incomes don't have to pay Federal Income taxes makes sense.

[proudohioan]

8. It IS sad that so many folks out there just DON'T get the big picture...

and you are so right about the poor still paying taxes - sales tax, property tax (even if you are a renter, since your those property taxes that your landlord pays are passed down to you), license taxes, etc..... are all a larger chunk of that poor persons income than to a millionaire.

It's a sad day indeed when such a large portion of Americans are living within 200% of the poverty level.

[Statistical]

9. Well it depends on deductions & exemptions.

Say married couple with 2 children.

Married Jointly Standard Deduction is $11,400 that is increased by another $1,900 for the kids.
Personal Exemption is $3550 per person (4) for total of $14,600. Now say they have $600 a year in student loan interest and put $3000 into tax defered savings (401K, 403b, IRA, etc). Now lets also say they have $5000 in tax free benefits paid from payroll (medical, dental, life insurance, etc).

That means the household could have $36,500 and pay no taxes.
However the "making work pay credit" is $400 per person ($800 total) so that would erase the first $800 in taxes due. First bracket is 10% so up to $8,000 in income result in $800 in taxes.

So w/ making work credit: $44,500. ETC could contribute another $1500 or so. So it is possible to make $46K - $50K and pay no federal income taxes.

It all depends on your situation. I kept it simple but it you itemize it could be much higher.

Still $46K on family of 4 isn't exactly rich, and they will still pay lots of other taxes.

[proudohioan]

10. Yes, that's my point.....

A family of four earning $46,000 per year is certainly far from rich; depending on their own personal situation (cost of housing, credit card debt, car loan, etc..) that family may be barely making it.

And you are correct, they will still pay LOTS of other taxes. Teabagger like to ignore that fact.

[Scuba]

11. Or pretty high. That'll get you out of paying taxes too !!!

[proudohioan]

12. I wouldn't know about that particular situation myself.....

but you probably have a point on that one!

:)

[notadmblnd]

7. I would say basically all of us.

there's a bill in congress right ow to extend the tax cuts already in place, till the end of the year. I believe this covers small businesses. Also the unemployment extension is attached to that bill. congress plans to vote on it be fore Memorial day.

[sinkingfeeling]

13. I read it was something like 90% of the population. Working people up to about $93,000 (single)

received up to $400 as a tax credit in 2009.