Shows up in the falling tax revenues
Exodus of Wealthy from New York
Tag: Taxes
Where Are the 47% of Americans Who Pay No Income Taxes?
Eight of the top 10 states with the highest number of nonpayers are red states.
One important note about these numbers: This measures only those Americans who filed for taxes with no liability. Millions more didn’t even file; it’s those millions, added to the estimated 52 million here, who combine to make that 47 percent.
It’s important to remember that just because people aren’t paying income tax doesn’t mean they’re not paying taxes — they pay federal payroll taxes and state and local sales taxes, for example. One those taxes are factored in, the tax regime is basically flat. And the reason that most income tax nonpayers don’t pay is they simply don’t make enough income to qualify to pay. As one might expect, the map of states with the highest poverty levels resembles this map fairly closely. Many of them are also seniors, a highly contested voting bloc. Just more than 10 percent of households pay no income tax because they’re retired. They might also be voters in places like Florida who are already jumpy about the changes to Medicare and Medicaid that the Romney-Ryan ticket has proposed — although they would be mostly unaffected by those reforms.
via Where Are the 47% of Americans Who Pay No Income Taxes? – David A. Graham – The Atlantic.
Top 1% Taxes Exceeds That of Bottom 95%
IRS data shows that in 2007—the most recent data available—the top 1 percent of taxpayers paid 40.4 percent of the total income taxes collected by the federal government. This is the highest percentage in modern history. By contrast, the top 1 percent paid 24.8 percent of the income tax burden in 1987, the year following the 1986 tax reform act.
Remarkably, the share of the tax burden borne by the top 1 percent now exceeds the share paid by the bottom 95 percent of taxpayers combined. In 2007, the bottom 95 percent paid 39.4 percent of the income tax burden. This is down from the 58 percent of the total income tax burden they paid twenty years ago.
To put this in perspective, the top 1 percent is comprised of just 1.4 million taxpayers and they pay a larger share of the income tax burden now than the bottom 134 million taxpayers combined.
Some in Washington say the tax system is still not progressive enough. However, the recent IRS data bolsters the findings of an OECD study released last year showing that the U.S.—not France or Sweden—has the most progressive income tax system among OECD nations. We rely more heavily on the top 10 percent of taxpayers than does any nation and our poor people have the lowest tax burden of those in any nation.
via The Tax Foundation – Tax Burden of Top 1% Now Exceeds That of Bottom 95%.