Posted on 04/20/2010 4:58:25 PM PDT by Kaslin
According to the Tax Policy Center, a Washington, D.C., research organization, nearly half of U.S. households will pay no federal income taxes for 2009. That's up from the Tax Foundation's 2006 estimate that 41% of the American population, or 121 million Americans, were completely outside the federal income tax system.
These Americans pay no federal income tax either because their incomes are too low or they have higher income but credits, deductions and exemptions that relieve them of tax liability.
This lack of income tax liability stands in stark contrast to the top 10% of earners, those households earning an average of $366,400 in 2006, who paid about 73% of federal income taxes. The top 25% paid 86%. The bottom 50% of taxpayers paid less than 4% of federal income taxes collected.
Let's not dwell on the fairness of such an arrangement for financing the activities of the federal government. Instead, let's ask what kind of incentives and results such an arrangement produces and ask ourselves whether these results are good for our country. That's a question to be asked whether or not one has federal income tax liabilities.
Having 121 million Americans completely outside the federal income tax system, it's like throwing chum to political sharks. These Americans become a natural spending constituency for big-spending politicians.
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That was my sign in Washington DC at the 9/12 rally-”No Representation Without Taxation, No Pay, No Say”
If someone has not paid taxes in last 4 years-not Social Security, but real payroll taxes, they do not have a dog in the fight. No Vote. All retired ex-taxpayers would be exempt and allowed to vote. All welfare, earned income, etc. should not have a say in our governance as they do not pick up the tab for the employees we elect.
That doesn't apply just to the income tax either. I don't know how this could be worked out, even in theory, but voters that do not own real estate, should be barred from voting on tax increases. I've heard 'renters' brag about voting for this tax increase or that tax increase and they're happy as larks because they are not footing the bill. They are happy to see homeowners getting bilked as long as their ox isn't being gored.
You bring up a good point. Williams’ point would really have to be tied to those who had no tax liability, not to those who simply and for whatever reason, such as good tax planning, “paid” no taxes.
I know people who pay little in taxes, but whose tax liabilities are huge. Their money still goes out the door to the government in various ways, but they manage to limit their tax liability quite well. I don’t see them in the same situation as people who have zero tax liability and in fact often receive a “credit.”
I posted this on a similar Williams thread, but the sad part is that for most of the people who would be put to the question of whether they would give up their welfare check or give up the vote — you can guarandamntee they would give up their right to vote in a New York minute! As it is, Rats can only get their voters out by paying them $10.00 walking around money and giving them a free bus ride to the polls. If you said, you can vote but only if you give up your check, are you serious?
And if people thinks that's too harsh, then repeal the 16th Amendment, do away with the income tax and all other payroll taxes and go to ONLY a VAT.
People cry that the VAT would fall "mainly" on the poor. Doesn't work with me anymore. Everyone should pay something. As a NY Post article said recently, if you can pay for cable tv, you ought to be able to pay a little something toward national defense.
If we had ONLY VAT, then each person could moderate the amount of taxes he paid by the amount of goods and services he purchased.
Reminds me of the owners of beach houses voting for massively expensive sand replenishment programs that benefit their homes, but are paid for by everyone in the town or even the state.
The beach house owners pay nothing? The people in that area should revolt against that. That’s nothing but unbridled greed...but it is definitely the same mindset as ‘renters’.
What that says is that the middle class is shrinking and the lower class is expanding. The rich are getting richer and in many cases their wealth is obscene.
Again, I think for this to work at all, it would have to be based on tax liabilities, not one what amount of tax is actually "paid." A taxpayer should not be "punished" for good tax planning -- and if the feds don't like that, then change the tax code so it is more like a flat tax.
How about this, Williams? Every American gets to vote for President. Only those with tax liabilities get to vote for congresscritters and senators. Think about it.
And here's another idea: Every American gets to vote for President, but come up with a way to tie a percentage of a State's Electors to the Electoral College to the State's taxpayers.
Wealth is never obscene.
Repeal the Seventeenth Amendment. Problem basically solved.
That is fine with me. With taxpayers making the decisions we might finally be able to gut welfare.
Do you really know what you're asking for?
A fat retail sales tax like the FairTax is fine, but a VAT screws us all by allowing the government to impose a snowball tax on every purchase we make.
And I agree with you about the need for a more regressive tax. It is long past time for everyone to pay SOMETHING in tax.
Are you comfortable with 10% of the population paying 73% of the taxes?
That sounds a lot like what Obama told "Joe the Plumber" during the '08 election!!!
Oh, I didn’t mean to suggest I wasn’t okay with that! I was just saying for those people who think this would be a travesty for some people to lose the vote, they need to realize that those who would lose the vote don’t even care.
Renters are indirectly paying property taxes, which are included in their monthly rent. The property owner passes the tax liability down to the renters so there is enough in the till to pay the city/county each year when due.
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