The Journal considers a hypothetical ducky who earns only $12,000 a year some guys have all the luck! and therefore, according to the editorial, "pays a little less than 4% of income in taxes." Not surprisingly, that statement is a deliberate misrepresentation; the calculation refers only to income taxes. If you include payroll and sales taxes, a worker earning $12,000 probably[WAG] pays well over
20[0.58] percent of income in taxes. But who's counting?
Obviously not Krugman, nor has he bothered to even look it up to find out.
BLS for one: ftp://ftp.bls.gov/pub/special.requests/ce/standard/2000/income.txt
In 2000, a consumer unit of 2.0 persons having a comprehensive income of $12,316,
$4,243 wages and salaries,
$217 selfemployment income
$6443 SS, private & government retirement
$164 interest, dividends, rental and other property income
$ 94 unemployment, workers comp, veteran's benefits
$754 public assistance, supplemental security income, foodstamps
$227 regular contributions for support
$176 other income
and paid
-$25 Federal income taxes
+28 State and local taxes
+68 Other taxes(FICA, excises, etc)
==================
+$71 total taxes
For a grand total of 0.576% total effective tax rate.
The worker's taxes aren't "enough to get his or her blood boiling with rage."
Obviously they aren't, 70% of the public clamors for more from government looking for the top 40% of income earners/producers to foot the bill.
Milton Friedman as quoted by Northwest Florida Daily News, 10-16-2000:
"If we're to have an income tax, it's a good thing for everyone to pay at least a nominal amount," he said. "If non-taxpayers become a majority in society, what would restrain them from voting for ever higher taxes on others?"
Indeed.