As The Burning Platform’s Jim Quinn notes,this isn’t actually a shocker.
When 40% of the working age population doesn’t work and another 10% only hold part-time jobs, they aren’t paying any Federal Income taxes. They are paying sales taxes, gasoline taxes, excise taxes, toll taxes, phone taxes, etc.
If it was up to me, I’d scrap all income taxes and replace it with a consumption tax. The politicians would lose a tremendous amount of corruptible power. The more you spend, the more you pay. Savers would be rewarded.
I do favor a High Frequency Trading tax on the Wall Street criminals, just like Bernie. We could use it to build Trump’s wall.
As MarketWatch’s Catey Hill details, 77.5 million households in America do not pay Federal individual income tax…
Many Americans don’t have to worry about giving Uncle Sam part of their hard-earned cash for their income taxes this year.
An estimated 45.3% of American households — roughly 77.5 million — will pay no federal individual income tax, according to data for the 2015 tax year from the Tax Policy Center, a nonpartisan Washington-based research group. (Note that this does not necessarily mean they won’t owe their states income tax.)
Roughly half pay no federal income tax because they have no taxable income, and the other roughly half get enough tax breaks to erase their tax liability, explains Roberton Williams, a senior fellow at the Tax Policy Center.
The top 1% of Americans, who have an average income of more than $2.1 million, pay 43.6% of all the federal individual income tax in the U.S.; the top 0.1% — just 115,000 households, whose average income is more than $9.4 million — pay more than 20% of it.When it comes to all federal taxes — individual income, payroll, excise, corporate income and estate taxes — the distributions of who pays what is more spread out. This is partially because nearly everyone pays excise taxes, which includes taxes on gasoline, alcohol and cigarettes.
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