Yahoo.com reported from Associated Press claiming that the super rich saw their federal taxes drop dramatically. The article is trying to support Obama's new tax increase for the rich saying that they don't pay enough. While the article states that more than half of the nation's tax revenue came from the top 10 percent of earners in 2007 and more than 44 percent came from the top 5 percent, it misses one more important thing. The taxes collected doesn't belong to the government, but to us, who worked hard to earn it. If Obama thinks the tax code favor for the middle class and the rich since 50% of Americans don't pay in federal income tax, then why not be fair and tax everybody. This is a class warfare tactic coming from the Democrat playbook.
Honestly, no American can say they don't pay enough in taxes. Yes, there are a lot of tax break from everybody. In fact, the people who don't pay in federal income tax get a tax credit or a tax refund. That is the intent of the government; to make us dependent on them. Since these tax breaks help create jobs and promote consumer spending, which stimulates the economy, the cause in the drop of revenues for the past 2 years was due to the recession and the downturn of the markets. That is why the federal government isn't raising enough revenues to satisfy their appetite. Instead, the government should cut spending and stimulate the economy. By increasing a job created by government, it will take away one job from the private sector and lessen the revenue the government can take in form of taxes. Therefore, the government responsibility is not to create jobs.
Liberals shouldn't punish success and make the rich look selfish. Class envy is not an attribute that Americans should follow.
(YAHOO) WASHINGTON – As millions of procrastinators scramble to meet Monday's tax filing deadline, ponder this: The super rich pay a lot less taxes than they did a couple of decades ago, and nearly half of U.S. households pay no income taxes at all.
The Internal Revenue Service tracks the tax returns with the 400 highest adjusted gross incomes each year. The average income on those returns in 2007, the latest year for IRS data, was nearly $345 million. Their average federal income tax rate was 17 percent, down from 26 percent in 1992.
Over the same period, the average federal income tax rate for all taxpayers declined to 9.3 percent from 9.9 percent.
The top income tax rate is 35 percent, so how can people who make so much pay so little in taxes? The nation's tax laws are packed with breaks for people at every income level. There are breaks for having children, paying a mortgage, going to college, and even for paying other taxes. Plus, the top rate on capital gains is only 15 percent.
There are so many breaks that 45 percent of U.S. households will pay no federal income tax for 2010, according to estimates by the Tax Policy Center, a Washington think tank.
President Barack Obama said last week he wants to do away with tax breaks to lower the rates and to reduce government borrowing. Obama's proposal would result in $1 trillion in tax increases over the next 12 years. Neither proposal included many details, putting off hard choices about which tax breaks to eliminate.
More than half of the nation's tax revenue came from the top 10 percent of earners in 2007. More than 44 percent came from the top 5 percent. Still, the wealthy have access to much more lucrative tax breaks than people with lower incomes.
Shoenberg, who now teaches a business class at Columbia University, said his income is usually "north of half a million a year." But 2009 was a bad year for investments, so his income dropped to a little over $200,000. His federal income tax bill was a little more than $2,000.
"I simply point out to people, `Do you think this is reasonable, that somebody in my circumstances should only be paying 1 percent of their income in tax?'" Schoenberg said.
Sen. Orrin Hatch of Utah, the top Republican on the Senate Finance Committee, said he has a solution for rich people who want to pay more in taxes: Write a check to the IRS. There's nothing stopping you.
The share of people paying no federal income tax has dropped slightly the past two years. It was 47 percent for 2009. The main difference for 2010 was the expiration of a tax break that exempted the first $2,400 of unemployment benefits from taxation, Williams said.
In 2009, nearly 35 million taxpayers got a tax break for paying interest on their home mortgages, and nearly 36 million taxpayers took the $1,000-per-child tax credit. About 41 million households reduced their federal income taxes by deducting state and local income and sales taxes from their taxable income.
About 36 million families cut their taxes by nearly $35 billion by deducting charitable donations, and 28 million taxpayers saved a total of $24 billion because their income from Social Security and railroad pensions was untaxed.