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Thread: Middle Class--Not the Rich or the Poor--Pay Majority of Federal Taxes, Says CBO Data

  1. #1

    Middle Class--Not the Rich or the Poor--Pay Majority of Federal Taxes, Says CBO Data

    (CNSNews.com) - Middle-class Americans--not the rich or the poor--pay the majority of annual tax revenues taken in by the federal government, according to data released in a new Congressional Budget Office study. Households earning less than $34,300 per year, meanwhile, actually pay a negative average federal income tax rate.

    Middle-class households that earned between $34,300 and $141,900 paid 50.5 percent of all federal tax revenues in 2007 (the most recent year analyzed), according to the CBO study released Thursday, and households that earned between $34,300 and $352,900 paid 66.7 percent of all federal taxes.

    Households in the top 1 percent for annual income (those earning more than $352,900) paid a healthy 28.1 percent of all federal taxes, but households in the lower income brackets paid relatively little. Those earning less than $34,300 paid only 5.2 percent of all federal taxes, and those earning less than $20,500 carried almost none of the federal tax burden (just 0.8 percent of the total) in 2007.

    The average overall federal tax rate (including income, Social Security, Medicare, excise and other taxes) for all American households was 20.4 percent in 2007. But the average rate rose dramatically as household income rose. Households earning less than $34,300 paid an average overall federal tax rate of 10.6 percent, while households earning more than $74,700 paid an average overall federal tax rate of almost two and half times that much--25.1 percent.

    When it comes to the federal income tax alone (as opposed to Social Security, Medicare, excise and other taxes) the lower income brackets actually paid a negative rate, thanks to programs such as the Earned Income Tax Credit that paid people a “credit” for income taxes they never paid. The average federal income tax rate for households earning less than $34,300, according to the CBO., was -0.4 percent in 2007, and the average federal income tax rate for households earning less than $20,500 was -6.8 percent.

    Over the past three decades, according to the CBO data, taxation has been getting more progressive, as the tax burden has lightened on lower income households while increasing on higher income households. During those three decades, Presidents Ronald Reagan and George W. Bush signed laws cutting the top marginal income tax rates, but Presidents George H.W. Bush and Bill Clinton signed laws increasing the rates.

    The CBO divided the 116.9 million American households of 2007 into five roughly equal parts (quintiles) graded by income. The income range for the lowest quintile was $0 to $20,500; the second quintile, $20,500 to $34,300; the third quintile, $34,300 to $50,000; the fourth quintile, $50,000 to $74,700; and the fifth quintile, $74,700 and above. The share of overall federal taxes paid by each of the first four quintiles decreased from 1979 to 2007, while the share of overall federal taxes paid by the highest-income quintile increased, meaning the overall tax burden was shifting away from that class of Americans making less than $74,700 per year in 2007 toward those earning more.

    TAX BURDEN HAS GROWN LIGHTER ON LOWER INCOME HOUSEHOLDS, HEAVIER ON HIGHER

    http://cnsnews.com/news/article/68094



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  3. #2
    This is all deception. The FICA tax, a regressive tax that hits the poor the hardest, increased dramatically during Reagan's term. Then there are other types of taxes that are more indirect that employers have to pay, that will either amount to lower salaries, or increase their prices.
    Finally, the consumer is paying more in energy, health, insurances etc due to regulation which includes fines and taxes on industries. Taxes have gone up in every income category, but the rich have advantages by either avoiding it, or passing it on to the rest of us.

    The media likes to devote about 99.99% of their time on income taxes, instead of the broader picture where many taxes are stealth. It is time to stop being manipulated by their little ruse.
    "It is our true policy to steer clear of entangling alliances with any portion of the foreign world. "
    George Washington

    "Since the general civilization of mankind, I believe there are more instances of the abridgment of freedom of the people by gradual and silent encroachments of those in power than by violent and sudden usurpations"
    James Madison

  4. #3
    Quote Originally Posted by paulitics View Post
    This is all deception. The FICA tax, a regressive tax that hits the poor the hardest, increased dramatically during Reagan's term. Then there are other types of taxes that are more indirect that employers have to pay, that will either amount to lower salaries, or increase their prices.
    Finally, the consumer is paying more in energy, health, insurances etc due to regulation which includes fines and taxes on industries. Taxes have gone up in every income category, but the rich have advantages by either avoiding it, or passing it on to the rest of us.

    The media likes to devote about 99.99% of their time on income taxes, instead of the broader picture where many taxes are stealth. It is time to stop being manipulated by their little ruse.
    Well said. And dont forget the inflation tax.

  5. #4
    I see percentages, and not figures.

    The rich do pay the "majority" of Federal taxes, even after leaping through loopholes. The middle class pay a higher percentage of their earnings in taxes. The poor face the biggest hardship in paying taxes on anything, because they could "use every penny."

    If this teaches anything, it's that every segment is burdened by taxation as it currently stands. The tricky part is that each segment also believes it benefits greatly from our current tax structure.

    The rich get all those loopholes, and they buy off politicians so they feel the system is working for them.

    The middle class drive on all those Government roads, and mostly send their kids to Government schools, and get those Government tax breaks on their home and their clunker and their new energy-efficient appliances, and they get "help" with the mortgage and credit card situations, so they feel the system is working for them.

    The poor could go get welfare, and fall against the safety net of Government programs. They also pay very little/no income taxes, so they feel the system is working for them.
    Genuine, willful, aggressive ignorance is the one sure way to tick me off. I wish I could say you were trolling. I know better, and it's just sad.

  6. #5
    I'll go homeless and die before I take welfare -- nevertheless in 2008 (on account of having given up my life to campaign for Ron Paul) I earned only $4,500 TOTAL for the year and ended up owing $700 in taxes come April 15th. Yes, I "get" that this is only 15%, but what if I did not have any emergency food stores to rely on? At the time, $700 (spent frugally) was a LOT of food and could provide food for 3-4 months, literally.

    My point is that it's not the 'blanket poor' that get mostly exempted from income tax, it's the specially selected groups from amongst the poor that get the exemptions. If you are not married, not a minority, not a woman, not a parent, not on welfare, not in prison, etc etc then this idea that the poor pay less taxes doesn't actually materialize...
    http://glenbradley.net/share/aleksan...nitsyn_4-t.gif “And how we burned in the camps later, thinking: What would things have been like if every Security operative, when he went out at night to make an arrest, had been uncertain whether he would return alive and had to say good-bye to his family? Or if, during periods of mass arrests, as for example in Leningrad, when they arrested a quarter of the entire city, people had not simply sat there in their lairs, paling with terror at every bang of the downstairs door and at every step on the staircase, but had understood they had nothing left to lose and had boldly set up in the downstairs hall an ambush of half a dozen people with axes, hammers, pokers, or whatever else was at hand?... The Organs would very quickly have suffered a shortage of officers and transport and, notwithstanding all of Stalin's thirst, the cursed machine would have ground to a halt! If...if...We didn't love freedom enough. And even more – we had no awareness of the real situation.... We purely and simply deserved everything that happened afterward.” ― Aleksandr Solzhenitsyn

  7. #6
    Quote Originally Posted by GunnyFreedom View Post
    I'll go homeless and die before I take welfare -- nevertheless in 2008 (on account of having given up my life to campaign for Ron Paul) I earned only $4,500 TOTAL for the year and ended up owing $700 in taxes come April 15th. Yes, I "get" that this is only 15%, but what if I did not have any emergency food stores to rely on? At the time, $700 (spent frugally) was a LOT of food and could provide food for 3-4 months, literally.

    My point is that it's not the 'blanket poor' that get mostly exempted from income tax, it's the specially selected groups from amongst the poor that get the exemptions. If you are not married, not a minority, not a woman, not a parent, not on welfare, not in prison, etc etc then this idea that the poor pay less taxes doesn't actually materialize...
    Being a woman certainly didn't help when I made very little money Just an FYI.
    Genuine, willful, aggressive ignorance is the one sure way to tick me off. I wish I could say you were trolling. I know better, and it's just sad.

  8. #7
    It has ever been thus - divide and conquer works not only on the battlefield, but in political activity as well. Who and what gets taxed is pure political activity.
    Out of every one hundred men they send us, ten should not even be here. Eighty will do nothing but serve as targets for the enemy. Nine are real fighters, and we are lucky to have them, upon them depends our success in battle. But one, ah the one, he is a real warrior, and he will bring the others back from battle alive.

    Duty is the most sublime word in the English language. Do your duty in all things. You can not do more than your duty. You should never wish to do less than your duty.

  9. #8
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    The Federal Income Tax was intentionally created to keep the middle class down and steer them towards usury schemes. This is no shock. If the middle class had more disposable income, it would obviously be able to pool it's excess monies into a more formidable political machine.



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  11. #9
    When the rich are taxed they simply pass it along to the rest of the people in the form of higher prices or less wages for workers.

    Corporate taxes are the sameway. Alot of people think nothing about what corporations pay in to the federal govt. But what it is doing is hurting consumers, workers, and investors (ie individual shareholders/pensioners).


    Most peple have no economic sense whatsoever.
    In 200 years the American people have replaced 1 dictator 3,000 miles away with 3,000 dictators 1 mile away.


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