Comments on: Chart of the day: U.S. taxes A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 By: ghb Sun, 02 Dec 2012 14:27:27 +0000 Two things I would like to point out about the chart. First half of employment taxes are paid by a corporation and all unemployment taxes are paid by corporations. If you changed this chart to reflect this fact you would see a different chart. Second if corporations paid all the taxes who would really be paying the taxes?

By: BHOlied Thu, 09 Dec 2010 15:21:34 +0000 in case you didn’t believe me about the 50% pay no Fed Income Tax: business-personal_finance

By: BHOlied Thu, 09 Dec 2010 15:19:54 +0000 clearly the focus here is on Employment Taxes but did I miss the part where the author explains who pays the employment taxes. The assumption is made that the poor pay these taxes, well so do everyone else…

Where is the detail of the Employment Tax data? How much of the Employment Tax revenue is derived from ‘poor’ people and how much from the rich?

And Social Security and Medicare are taxed at no more than 7.65%. How does that compare to a 35% marginal tax rate?

Lastly, I’d like to point out that there is a huge behavioral issue with a system where 50% of the country pays no FEDERAL income taxes.

Sure, the ‘poor’ pay payroll taxes for Medicare and Soc Security – they also collect what they contribute to Social Security (income cap of ~100k) and more than they contribute to Medicare (no income cap so the rich pay more yet get the same Medicare plan). So the remaining largest piece of the pie is Income Taxes which the poor do not pay.

Also, if you are self-employed, you pay 15.3% for Medicare and Social Security (twice the normal rate).

By: TFF Wed, 08 Dec 2010 04:09:28 +0000 The Tax Foundation publishes some pretty comprehensive tables on the Income Tax. The top 1% comprise 20% of the AGI and 38% of the income tax. The third quartile (between 25% and 50%) comprise another 20% of the AGI and 11% of the income tax. The bottom 50% comprise 13% of the AGI and 3% of the income tax.

The distribution of the tax burden shifts, of course, if you include the payroll taxes. Moreover, the marginal tax rates on wage income (income and payroll taxes combined) are quite high throughout most of the income scale. Since economic incentives depend on the marginal tax rates, this is a concern even if the overall tax rate isn’t terribly high.

By: TFF Wed, 08 Dec 2010 03:58:22 +0000 Ah, I understand. I was reading it differently, since a dramatic reduction in the deficit like that *would* solve the problem, by reducing the growth in the debt to something sustainable.

By: Danny_Black Tue, 07 Dec 2010 23:29:43 +0000 TFF, I was specifically responding to this claim:

“Federal taxes are the lowest in 60 years, which gives you a pretty good idea of why America’s long-term debt ratios are a big problem. If the taxes reverted to somewhere near their historical mean, the problem would be solved at a stroke.”

Clearly if it can’t even turn a deficit into a surplus then it is not going solve the US long-term debt…

By: Jackwatch Tue, 07 Dec 2010 19:11:34 +0000 Everyone knows where this tripe is going. After they make everyone insane, they will start entertaining a flat tax system, probably with a VAT component. This is fine as long as a few conditions are agreed to.
1)flat tax rate, across the board is a constitutional ammendment, and can only be changed like any historic ammendment process. the flat tax is the only tax, trash the rest. no multiple tax structures on the same dollar, this includes interest,inheritance, carbon, bla bla ( 165 items), ect. This will FORCE wiser decisions on ALL LEVELS!!!!!!
2) local taxes get reduced to a VAT only, loose everything else, if you cant afford it you cant have it. Bad decisions, bad business, less money, less purchasing….. you following? the anti socialist program.

Break the cycle of looting people and sending robin hoods to DC to get it back, meanwhile we are so busy with this game we have become the clown empire of the civilized world, with historic corruption, waste and stupidity.
basically people around the world hate us and want to take advantage of us because they think we are stupid.

By: Hawkishdove Tue, 07 Dec 2010 17:24:40 +0000 Alz2: Your source is suspect. The National Taxpayers Union says it’s “nonpartisan.” So how come its “testimonials” all come from the right? The list in toto and in order: Bush junior, Reagan, McCain, Armey, Paul, Murdock, Toomey, Flake.

NTU says the top one percent earned in 2008 on average $380,354 and together they accounted for 38.0 percent of the government’s personal income tax take. If we assume that’s before taxes but after deductions — that is, net taxable income — and this top one percent paid the top tax rate of 35 percent, they paid an average of $133,124 to the feds, leaving them $247,230 in spending money for the year.

To bring down the deficit, who can most afford to sacrifice a little, the poor or the family with $247,230 to spend?

By: ejsofel Tue, 07 Dec 2010 16:24:13 +0000 Mike Gayner,
You seem to use the chart you cite somewhat deceptively. The United States is found a little north of Japan and South Korea and a little south of Switzerland, Australia and Canada. Not bad company. Also, at 28%, the US is nearer to New Zealand (36%) than to Kenya (18%), so why do you GROUP the US with Kenya and dissociate it from New Zealand? Makes no sense. Moreover, New Zealand is nearer the US than it is to the Scandinavian countries which near 50%.

Also, you forgot to mention Zimbabwe as one of those enviable nations with tax receipts near 50% of GDP.

I agree with FS that the US tax structure is hopelessly disordered, but your general principle that higher receipts is better is not very useful as a measure of fiscal health, unless we are to take Zimbabwe as a paragon and Canada as a pariah.

By: FudoMyoo Tue, 07 Dec 2010 16:21:57 +0000 @Alz2: “- the top 1% pay about as much as the bottom 95%”

you were paying attention when it was discussed that the top 1% _earn_ as much as the bottom 95, right? That seems to make it equitble, doesn’t it?

oh, that’s right, corporate fascists don’t lie