An equitable tax system would charge the same rate for everyone. Does this mean the top 10% will finally get to stop paying 70+% of the taxes?
Chris, you wonder if what the top 10% are paying in taxes is equitable. Check this out:
Some 86 percent of working households pay more in payroll taxes than in federal income taxes. In fact, low- and moderate-income people pay a much larger share of their incomes in federal payroll taxes than high-income people do: taxpayers in the bottom 20 percent of the income scale paid an average of 8.8 percent of their incomes in payroll taxes in 2007, compared to just 1.6 percent for taxpayers in the top 1 percent of the income distribution. …
Low-income families also pay substantial state and local taxes. Most state and local taxes are regressive, meaning that low-income families pay a larger share of their incomes in these taxes than wealthier households do. The bottom fifth of taxpayers paid 12.3 percent of their incomes in state and local taxes in 2010, according to the Institute on Taxation and Economic Policy (ITEP) model. That was well above the 7.9 percent average rate that the top 1 percent of households paid.
Center on Budget and Policy Priorities http://www.cbpp.org/cms/index.cfm?fa=view&id=3505
Couldn’t agree more. Most people in this country hear oversimplified statements by politicians and rush to extremely dangerous conclusions. Thank you so much for the link to CBPP! I did some research and it looks like Washington state seems to have it’s own parallel think tank called the WA State Budget and Policy Center. Budgetandpolicy.org
Let’s take a look at two things: Payroll Tax & Income Tax
First, percent of income tax revenue collected
Top 0.1% ─ Pays 18% of all income tax revenue.
Top 1% ─ Pays 38% of all income tax revenue.
Top 10% ─ Pays 70% of all income tax revenue.
Top 50% ─ Pays 97% of all income tax revenue.
Lowest 50% ─ Pays 3% of all income tax revenue.
The wealthiest pay a disproportionately higher share of income taxes.
Second, tax rate by income group
Top 1% ─ 24 percent
Top 10% ─ 20 percent
Top 50% ─ 18 percent
Lowest 50% ─ 2.9 percent
The wealthiest pay at a disproportionately higher rate.
http://www.irs.gov/pub/irs-soi/09in01etr.xls (Excel Spreadsheet)
Third, the payroll tax
The payroll tax is set at 15.3 percent.
12.4% Social Security + 2.9% Medicare = 15.3 percent.
This is split between the employee and employer making he employee portion just 7.6 percent.
The rich are pay a disproportionately greater amount of income tax revenues at a disproportionately greater amount than the lowest 50% of the population which pays virtually nothing. Both pay the payroll tax on their wages and salaries. So while it’s true that the lowest 50% pays more in payroll taxes than income tax, that is not saying much considering the average is just 2.9 percent.
It should Chris. Tax everyone the same and eliminate loopholes. The only exeption would be to have no tax levied on those whose income is below the poverty level. Then the 47% who pay nothing could start paying something and I would stop paying at a marginal rate of 35%.
Bank of America reported profits last year= $10 billion. Federal income tax=$0.
Hi Jamie, What is your source for the B of A Taxes? Is there a way to look-up corporate IRS taxes on line? Please respond with a private message is you have the time? Thanks! John >>> john_flit(at)yahoo.com
Jaime, are you on medication? Bank of America is not a person. You cannot legally marry Bank of America. Just as you and I do not individually pay corporate taxes, Bank of America does not pay individual income taxes. People pay income taxes. Businesses pay corporate taxes. Even if Bank of America corporately got dressed up in a giant person suit and went to the IRS to TRY and pay personal income taxes, they would be rebuffed.
Again, the biggest threat to the public is it’s populace.
Explaining tax structure is one thing, belittling people is another. Our system of taxation is confusing, and what is more confusing is whether or not a corporation is a person. The Supreme Court gave corporations the same rights as people, so while you were belittling someone for not fully grasping the complexities of the tax structure you made a fatal flaw, well two. One: Corporations are people in the US, and Two: “The biggest threat to the public” is not the populace, it is misinformation and infighting.
There is a perceived lack of resources in the country that leaves us fighting each other over a few bread crumbs, but if we stop fighting long enough to look up we will see who is eating the whole cake. Please do not attack each other, ask for sources and inform, but be respectful. We are all on the same journey here. We want a better life for ourselves, our families, our neighbors, and our communities. We do not have to compete to win.
David Ferola 9 step plan
Step1) Send your TAXES to a trusted congressman or congresswoman which maybe hard to find in your state. Prepare your taxes made out to the I.R.S check and envelope, get another bigger envelope and fit in inside write on this envelope to congress preferably to Ron Paul
203 Cannon House Office Building
Washington, DC 20515
Phone Number: (202) 225-2831
Have congress unwrap the envelopes, and send it to the I.R.S
If you are asking yourself, what will this achieve first it can be used as a bargain chip however, congress cannot spend it or over take the fed reserve and bank system over night, nonetheless this will indeed give teeth/meat, back to congress.
STEP2) At every rally SHOUT “Send you taxes to Ron Paul!”
Step 3) OWNERSHIP: With meat and teeth congress can demand ownership of the Federal Reserve, as to how much, well a good start would be 45 percent, of course congress should have full control of the fed reserve. However, letting the opposition think you’re a fair man goes a long way.
STEP4) Demand FREE copy rights and trademark and Patents for first timers, this will stimulate the economy, I know of someone who created the spinner rims, but he had no money to protect it, guess what a company/businessman from other country got there first, 4 billion dollars a year was generated and people were put to work. Having someone get there with a great idea first is nothing new but if small American inventors had an edge it would help greatly the economy. Imagine if everyone had a little dream supported by the government for first timers.
STEP5) At every rally SHOUT “free Patents free trademarks!”
for more click the link
People pay income tax. If a corporation isn’t a person then they don’t have to pay income tax.
Where is this profit? Should it be taxed? Certainly Bank of America is contributing a huge amount of tax dollars through payroll, property and a million other business tax in all of the states they operate. Profit is paid to shareholders who also pay taxes on their gains. Not to mention the taxes on the loan that was given them. Our government made a pretty penny on that.
Jamie, why don’t you do some basis research? Look at Bank of America’s annual report to shareholders as filed on SEC Form 10-K. On page 32 of their 2010 Form 10-K, they reported a net LOSS to shareholders of $3.6 billion (due to writing off bad loans from deadbeats like you) and reported income tax expense of $915 million. Do a little research before spouting off. Such forms are available on the public websites of any publicly traded firm.
I will be reporting on the very logical demands and well-organized Occupy Wall Street and Occupy Seattle movements this Friday from 12:15 to 12:30 on a radio program that will open its phone lines for you to call in from 12:30 to 1:00 PM. Please share your front line stories.
Equal Time Radio – equaltimeradio.org
Friday, noon – 1:00
KLAY 1180 AM or
Live at http://www.klay1180.com/live_radio.htm
The David Ferola 9 step plan
Fellow comrades, if for some reason you can’t join us here in Westlake Park, you can still help the protest by;
1. Encouraging Friends and Family to attend
2. Send donations
3. Spread the word through your network of friends via Facebook or whatever-Face
4. Ask your Union to send Reps
5. Ask your progressive company to send food
6. Contact the local media
7. Reach out to like minded organisations asking for their support, and to send representatives down to help
8. I’m sure there are things we missed, but think creatively, and spread the word!
If not now, when?
The taxation structure here is the MOST regressive and unfair state taxation structure in the United States. Can you let that sink in for a second? Think of a state that you think has economic injustice…Georgia? Alabama? Washington is worse. You collect more than 15% of poor people’s income in taxes, while the rich pay closer to 5%. How can you allow that injustice to continue? Imagine a family of four living on around $20,000 a year, which is what we consider poverty in this country. Now imagine giving $3,000 of that to the state in taxes. $17,000 left, and how much of that is for rent? Where can a family of four rent in Washington while still having enough money for food/utilities/clothes/etc?
Please look at the report from the Institute on Taxation and Economic Policy on our taxation in Washington for more information. http://bit.ly/nydOFo
It’s disgusting that the Republicans and Democrats have such a strangle hold on the political process. They have a monopoly that always benefits the sides of special interests, and above all, the central bankers. If Americans truly understood what was going on with the Federal Reserve System, there would be a revolution overnight.
We need to ‘March On Medina’. That’s where the 1% lives locally. Medina is the second richest zip code in America.
Great idea! But what is the message? That we’re pissed off? We need some focus, not just protest angst. Do we tell them we will burn down their neighborhood if they don’t address the vague demands posted here? We really need to get our act together and figure out some specific solutions that can be implemented in the short term or we are just a nuisance in the streets babbling about 1001 different desires. We need to be in the streets to get the politicians to hear, we need to boycott products to get the 1% to hear. The only way you change the 1% is by hitting them in the pocketbooks. Unless, of course, you burn down their neighborhoods (jk).
Wow…that is a good idea!! Although it would have to be done carefully because if that is true, then you would have to be prepared for a more aggressive response from the SPD.
Time for a flat tax. Get rid of the IRS.
A progressive flat tax is the only solution. Of course that is going to destroy whole industries and create even more economic distress.
These terms are not compatible. A flat tax is a tax that everyone pays at the same percentage; a progressive tax is one in which taxes are determined by income level, the low end of income getting taxed at a lower percentage than higher incomes.
I agree with a progressive tax; one in which those who use the commons the most, pays the higher tax rates.
A flat tax is regressive and unfair on the face of it. Those who earn least, spend 100% of their income; those who earn the most spend a small percentage of theirs. Sales taxes are also regressive for the same reason.
UNTIL the 1% pays taxes, halt all levies and garnishments by the federal and state governments.
The top 10% pays almost all the taxes at a much higher rate than the majority of Americans.
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