Axing the dollar

Well, Mitt you shouldn’t have said it. But the percentage wasn’t that far off. It is true, however, that anywhere between 49-47 percent of Americans don’t pay federal income tax. To be fair, I don’t think the ones that don’t pay are bitter clingers hanging on to their guns and their Gods. Anyway, to be clear, we’re talking about Federal income tax. On a side note, everyone pays some type of taxes, whether its sales tax, city tax, state tax.

The exact percentage of people who pay no Federal income tax varies depending on the economy, however, according to a 2012 report from the Center for Budget and Policy Priorities:

Close to half of U.S. households currently do not owe federal income tax.  The Urban Institute-Brookings Tax Policy Center estimates that 46 percent of households will owe no federal income tax for 2011.    A widely cited figure is a Joint Committee on Taxation estimate that 51 percent of households paid no federal income tax in 2009.   (The TPC figure for 2009 also is 51 percent.)

Many of those who don’t pay taxes are the poor and the elderly.

I don’t have any real judgments to make here. I guess if I did, it would be that so much of the discussion about taxes that I hear centers on the statement about the rich not paying their share, even though, apparently, half of the country doesn’t pay anything. Don’t get me wrong, I’m not advocating taxing the poor or the elderly. I’m advocating adding a few facts the next time someone brings up the subject.

From CNBC, according to the Congressional budget office:

Buried inside a Congressional Budget Office report this week was this nugget: when it comes to individual income taxes, the top 40 percent of wage earners in America pay 106 percent of the taxes. The bottom 40 percent…pay negative 9 percent.

If you want to find out what negative 9 percent means, click the CNBC link below.

If you want to find out what you’re paying for (if you’re one of the ones doing such) the White House has provided this handy little calculator. Keep in mind, that of all this stuff on the list, only half of us are paying for it.

http://www.whitehouse.gov/2013-taxreceipt

I guess you can trust it if you believe the government wouldn’t deceive you.

I’ll conclude with this quote from the CNBC article written by Jane Wells.

People who make more should pay more, generally speaking. In America, they are. Yes, the rich (and almost rich) are getting richer. When it comes to individual income taxes, they’re also covering the entire bill. And leaving a tip.

Hupp out.

http://www.cnbc.com/id/101264757

http://money.cnn.com/2013/08/29/pf/taxes/who-doesnt-pay-federal-income-taxes/

http://www.washingtonpost.com/blogs/wonkblog/wp/2012/09/18/who-doesnt-pay-taxes-in-charts/

http://www.cbpp.org/cms/?fa=view&id=3505

http://www.washingtontimes.com/news/2012/jul/10/cbo-rich-pay-outsized-share-taxes/

When I go to my dry cleaners, they have a sign that says, “If you’re not offered a receipt, your order is free.” Same thing in the convenience store. And about most of the places I shop. Even the liquor store, for goodness sake.

Except when I pay my taxes. No itemized receipt. They want to know how much I make. But they don’t want to tell me where they spend it. Not even a “thank you.”

Here’s a nice website so you can find out. Sort of. It’s the “Federal Taxpayer Receipt.”  It’s from the Whitehouse, so you know you can trust it. It’s a nice try, but kind of vague.

Here’s a screen grab from the website. (Click it to make it bigger)

Tax site screen grab

I’m not that impressed. I want some detail. For example you can expand all the categories, (at least get a little more detail) except the last six. One that bothers me is “Additional Government Programs,” at 7.9%. Eight percent under one lump category? Bogus.  When I budget projects in my job, Eileen would never let me get away with, “Other stuff, 8%.”  Not a chance.

Actually,the total of the last six categories is 19.6%, or, “other stuff.” There is little or no itemization or explanation.

Here are two of the categories expanded.

Again, I’m going to need some more itemization. It’s like saying you went to the grocery store and spend $150.00. Well, what did you spend it on? Filet mignon and bacon? Or chips and salsa?

You can make some of your own conclusions. I want to know how much the Department of Education gets, and what they’re doing with it.  Because a lot of the schools suck and we’re seriously falling behind in the hard sciences.  I’m not sure whether that’s because of the money we spend, or that we spend too much time debating sexuality. You know, stop the social B.S. and teach the kids some stuff, eh? That’s just one example. Let’s not talk about the post office or the Driver’s License Bureau, or the…well anyway.

I’d like an itemized receipt. So I could say “I spend how much on robotic squirrels? Nope, cross that off, want my money back on that one.” Yea, that’s an extreme example. We all need to pay for some stuff. So, take how much money the government spent, divide it by the number of eligible taxpayers, and…oh, tack on a bunch more for the “rich” and let the…well, this is where it starts to get complicated, eh.

The government is taking our money. And they’re starting to take more of it from those of us who earn it, and give it to those who don’t. (Has that happened before?)  The scales will tip, sooner or later. I’d like to at least get a nice high-speed train out of it.