Weekly Ad: See Best Buy's new Digital Weekly Ad here! See Deals
Forum Thread

Taxes On The Rich Near 30-Year High: Tax Policy Center

DJPlayer 10,513 690 March 3, 2013 at 03:03 PM
http://www.huffingtonpost.com/201...f=business

Quote :
For 2013, families with incomes in the top 20 percent of the nation will pay an average of 27.2 percent of their income in federal taxes, according to projections by the Tax Policy Center, a research organization based in Washington. The top 1 percent of households, those with incomes averaging $1.4 million, will pay an average of 35.5 percent.

Those tax rates, which include income, payroll, corporate and estate taxes, are among the highest since 1979.

The average family in the bottom 20 percent of households won't pay any federal taxes. Instead, many families in this group will get payments from the federal government by claiming more in credits than they owe in taxes, including payroll taxes. That will give them a negative tax rate.

The middle 20 percent of U.S. households – those making an average of $46,600 – will pay an average of 13.8 percent of their income in federal taxes for this year, according to the Tax Policy Center. Over the past three decades, the average federal tax rate for this group has been about 16 percent.

The new tax law made the federal income tax more progressive, increasing the top tax rate from 35 percent to 39.6 percent, on taxable income above $400,000 for individuals and $450,000 for married couples filing jointly. Lower tax rates on income below those amounts were made permanent. Also, tax breaks for low-income families first enacted as part of Obama's 2009 stimulus package were extended through 2017.
So much for those few and far between examples of the rich having single digit effective tax rates. It's actually the bottom 20% with the 0 or negative effective tax rates. Let's consider this also.. this is the highest the taxes have been on the wealthy.. the most assistance to the bottom 20% and also the slowest growing U.S. economy in history (which is very awkward considering recessions are normally followed by a bounce back), coincidence?

I can actually attest that I have heard and watched people decide not to work (or work very little) because the benefits are so great for those with limited income. I've actually had rather intelligent people actually through the numbers arguing that "if I work here making $x and hour.. I make $x per year.. pay $x etc.. etc.. , but if stay below this annual income instead. I will get x, y, and z in state and federal assistance. Sure enough their math worked out.. it was in their financial best interest to be underemployed vs. full time employed. Of course it's not a bright idea over a long term basis, but some people are apparently fine with squeaking by.. (possibly forever).

235 Comments

1 2 3 4 5

Sign up for a Slickdeals account to remove this ad.

This comment has been rated as unhelpful by Slickdeals users
Joined Nov 2011
Deal lover
1,156 Posts
345 Reputation
#2
I'm glad they have hit a all time high. I'm a registered Republican and feel they don't pay enough. This article only talks about income tax. Lets talk about what percent of overall income is paid in taxes and fees by the lower class or the lower middle class. Income tax, property tax, school tax, gas tax, sales tax, social security tax, taxes on phones, taxes on cable/tv etc...... Percent the rich pay of their income in overall tax is much lower then the rest of us.
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
#3
Quote from JeniC View Post :
I'm glad they have hit a all time high. I'm a registered Republican and feel they don't pay enough. This article only talks about income tax. Lets talk about what percent of overall income is paid in taxes and fees by the lower class or the lower middle class. Income tax, property tax, school tax, gas tax, sales tax, social security tax, taxes on phones, taxes on cable/tv etc...... Percent the rich pay of their income in overall tax is much lower then the rest of us.
I agree. The rich don't own property or gas powered cars or buy stuff or own phones or TVs so they can avoid those taxes. Oh they also don't pay into SS. Not sure what a "school tax" is so I can't agree with that example.
Reply Helpful Comment? 0 0
All growth depends upon activity. There is no development physically or intellectually without effort, and effort means work. — Calvin Coolidge
"Under Barack Obama, the only 'change' is that 'hope' is hard to find" - Marco Rubio
This comment has been rated as unhelpful by Slickdeals users
Joined Mar 2011
L8: Grand Teacher
3,566 Posts
351 Reputation
#4
Quote from DJPlayer View Post :
I can actually attest that I have heard and watched people decide not to work (or work very little) because the benefits are so great for those with limited income.
Yes, it's true. In towns and cities across America, the rich are giving away their fortunes, throwing their money into landfills, and torching their palaces because it's better to pay a 0% tax rate on $10000 annual income than it is to pay 30% on $10 million. I feel sorry for the poor rich suckers who keep soldering on, despite the hardships of wealth! Frown
Reply Helpful Comment? 0 0
Thanks to ObamaCare, my health insurance premiums dropped 30% and I now have a plan that covers routine care! Thank God for ObamaCare! bounce
This comment has been rated as unhelpful by Slickdeals users
#5
Quote from JeniC View Post :
I'm glad they have hit a all time high. I'm a registered Republican and feel they don't pay enough. This article only talks about income tax. Lets talk about what percent of overall income is paid in taxes and fees by the lower class or the lower middle class. Income tax, property tax, school tax, gas tax, sales tax, social security tax, taxes on phones, taxes on cable/tv etc...... Percent the rich pay of their income in overall tax is much lower then the rest of us.
Lets see the data...
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
Joined Mar 2011
L8: Grand Teacher
3,566 Posts
351 Reputation
#6
Quote from JeniC View Post :
Percent the rich pay of their income in overall tax is much lower then the rest of us.
Precisely.

Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
#7


So much lower than the rest of us...
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
Joined Apr 2009
MakeAmericaGrr..HateAgain
38,740 Posts
#8
Any data on the top 2%?
Reply Helpful Comment? 0 0

Sign up for a Slickdeals account to remove this ad.

This comment has been rated as unhelpful by Slickdeals users
Joined Nov 2011
Deal lover
1,156 Posts
345 Reputation
#9
Quote from jonsmith74 View Post :
Lets see the data...
Someone posted above but its also common sense.

Quote from andyfico View Post :
Not sure what a "school tax" is so I can't agree with that example.
In NYS if you own property you pay a property tax and a school tax. My property tax is about $2200 and school tax is about $2100.
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
#10
Quote from JeniC View Post :
Someone posted above but its also common sense.
That poster posted on state and local taxes as a % of income.

But, since you think your point is a common sensical, what about my post providing total tax bite including fed, state and local...

Ooops..

Quote :
In NYS if you own property you pay a property tax and a school tax. My property tax is about $2200 and school tax is about $2100.
Not all local jurisdictions have dedicated school taxes. Typically, schools are funded from sales, property, lottery sales, or some combination thereof.
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
Joined Mar 2011
L8: Grand Teacher
3,566 Posts
351 Reputation
#11
Quote from jonsmith74 View Post :
So much lower than the rest of us...
Growth in after-tax income, 1979-2007:



Oh, the poor oppressed rich. Wink
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
Joined Oct 2004
L7: Teacher
2,644 Posts
68 Reputation
#12
Quote from gunnerusa View Post :
Precisely.

Umm, just because you get richer, it doesnt mean you have proportionally more homes or cars than a poor person does!

I make a very nice income, no state income tax, live in an apt in part due to high property taxes, and drive older cars which are cheap to register. So besides sales tax and car reg, Texas gets right about nothing else from me, oh the horrors!
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
#13
Quote from TRNT View Post :
Any data on the top 2%?
The top 1 and top 5 percent are not good enough?

Quote from gunnerusa View Post :
Growth in after-tax income, 1979-2007:



Oh, the poor oppressed rich. Wink
Move the goal posts...besides, who was carping about how tough it is for the rich? Red herring, er strawman, much?
Reply Helpful Comment? 0 0
Last edited by jonsmith74 March 3, 2013 at 04:05 PM. Reason: Automerged Doublepost
This comment has been rated as unhelpful by Slickdeals users
Joined Nov 2011
Deal lover
1,156 Posts
345 Reputation
#14
What people also tend to forget is those with more money also put more of a burden on the lesser. How? Well for example all those huge SUV's, expensive boats, private airplanes (for those that actually have them) all use more gas thus causing the demand to rise thus causing the rest of us to pay more. Same thing with electricity. I drive around some of the "richer" streets in my area and a lot of houses have like 5 spot lights and recessed lighting on the exterior of their house lighting it up to show off. All night approx 9 hrs x 365 days a year. This "waste" drives up costs for the rest of us.
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
Joined Nov 2011
Deal lover
1,156 Posts
345 Reputation
#15
Quote from jonsmith74 View Post :
Not all local jurisdictions have dedicated school taxes. Typically, schools are funded from sales, property, lottery sales, or some combination thereof.
Um I was posting EXAMPLES of taxes people pay. And yea in NYS we have School tax.
Reply Helpful Comment? 0 0
Page 1 of 16
1 2 3 4 5
Join the Conversation
Add a Comment
 
Copyright 1999 - 2017. Slickdeals, LLC. All Rights Reserved. Copyright / Infringement Policy  •  Privacy Policy  •  Terms of Service  •  Acceptable Use Policy (Rules)  •  Interest-Based Ads
Link Copied to Clipboard