Happy Tax Day -- Part Three
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One last thought today on income taxes -- a reiteration actually.
I have repeatedly noted on this blog that the federal income is steeply progressive, despite the protestation of radical liberals that "the rich don't pay their fair share." Indeed -- only the rich(er) pay income tax at all -- the lower 50% of households have no net federal income tax burden. How much more progressive than "some pay all while others pay none" can a tax system be?
Which is not to say, of course, that the lower middle class and working poor don't pay taxes -- they of course pay, directly or indirectly, sales taxes, property taxes, a whole gaggle of taxes. Point conceded.
And, more importantly, they also pay the other federal tax -- Social Security tax (and Medicare tax).
Here is the latest information on comparative federal taxes from the Urban Institute -- and important information it is:
No, if you truly care about the middle class and the working poor -- which Democrats incessantly insist they do -- then your efforts should be on reforming Social Security and returning to them some portion of that obscene, crippling 15.3% tax under which they are being crushed.
Think any Democrats -- especially Clinton, Obama, Edwards, Richardson, Biden et al -- will see these data and suddenly call for reviving discussions on any aspect of Social Security reform, let alone voluntary partial privatization?
Me neither.
More thoughts at Tax Policy Blog.
I have repeatedly noted on this blog that the federal income is steeply progressive, despite the protestation of radical liberals that "the rich don't pay their fair share." Indeed -- only the rich(er) pay income tax at all -- the lower 50% of households have no net federal income tax burden. How much more progressive than "some pay all while others pay none" can a tax system be?
Which is not to say, of course, that the lower middle class and working poor don't pay taxes -- they of course pay, directly or indirectly, sales taxes, property taxes, a whole gaggle of taxes. Point conceded.
And, more importantly, they also pay the other federal tax -- Social Security tax (and Medicare tax).
Here is the latest information on comparative federal taxes from the Urban Institute -- and important information it is:
About two-thirds of taxpayers owed more payroll taxes (including the employer portion) than individual income taxes in 2006. Many households (including most retirees) do not have any wage income and thus pay no payroll tax. Among households with wage earners, 86 percent have higher payroll taxes than income taxes, including almost all of those with incomes less than $40,000 and 94 percent of those with incomes less than $100,000. If only the employee portion of payroll taxes is considered, 44 percent of taxpayers and 56 percent of wage earners pay more payroll tax than income tax, including nearly 80 percent of earners with incomes less than $50,000.So again, it's not about "tax cuts for the rich" -- you can only cut income taxes for those who actually pay income taxes in the first place. All else on that front is sophistry.
No, if you truly care about the middle class and the working poor -- which Democrats incessantly insist they do -- then your efforts should be on reforming Social Security and returning to them some portion of that obscene, crippling 15.3% tax under which they are being crushed.
Think any Democrats -- especially Clinton, Obama, Edwards, Richardson, Biden et al -- will see these data and suddenly call for reviving discussions on any aspect of Social Security reform, let alone voluntary partial privatization?
Me neither.
More thoughts at Tax Policy Blog.
Related Posts (on one page):
- Happy Tax Day -- Part Three
- Happy Tax Day -- Part Two
- Happy Tax Day -- Part One
Posted by Kip on
16 April 2007
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