Mon Sep 17, 2012, 05:55 PM
pnwmom (48,803 posts)
That 47% of people who paid no additional Federal income taxes,
Last edited Mon Sep 17, 2012, 05:59 PM - Edit history (4)
made up of low wage earners, the disabled, the elderly, etc. -- was the percent in 2009, in the worst part of the recession. The number was much higher than it had been in previous years simply because wages had suddenly dropped -- and it included people whose taxes had been legislatively reduced as part of the Economic Recovery Act.
Moreover, and this is key, the 47 percent is only 47 percent because of the recession. As CBPP wrote in May, the high number “reflects the unique circumstances of 2009, when the recession greatly swelled the number of Americans with low incomes and when temporary tax cuts created by the 2009 Recovery Act — including the “Making Work Pay” tax credit and an exclusion from tax of the first $2,400 in unemployment benefits — were in effect. Together, these developments removed millions of Americans from the federal income tax rolls. Both of these temporary tax measures have since expired. In a more typical year, 35 percent to 40 percent of households owe no federal income tax. In 2007, the figure was 37.9 percent.”
As CBPP tax expert Chuck Marr explained to me, this is a good phenomenon, and one that helped prevent the economy from sinking even further in 2009.
“The place to start on this though is that the years discussed are just not typical — this is the worst economic climate since the Great Depression,” Marr said. The numbers have been bumped by about 10 percentage points “that’s what you want — should we argue that we should raise taxes on these people to keep it at 37 percent?”
2 replies, 821 views
That 47% of people who paid no additional Federal income taxes, (Original post)
Response to pnwmom (Original post)
Mon Sep 17, 2012, 06:41 PM
Nay (6,523 posts)
1. Legislatively, removing millions from the Fed tax rolls also 1) allows business to keep wages low
by letting workers keep a bit more of their money, 2) starves the Fed govt of tax money it needs, and 3) gives the RW the talking point about how 47% lazy-ass ppl don't pay income taxes!
You notice they never TELL you exactly why these ppl aren't paying income taxes; their own legislature put those tax measures in, perhaps mainly to help ppl (although that's debatable) but it also gives the RW some talking points.
Response to Nay (Reply #1)
Tue Sep 18, 2012, 05:35 AM
pnwmom (48,803 posts)
2. The point you're making is supported here:
Rs have spent years cutting income taxes and increasing things like the Child Tax Credit. This means fewer people pay income taxes.
So whenever you hear a stat like "47% don't pay income taxes," remember: Reagan and Bush helped build that.
These tax cuts for the poor were partly in order to make further tax cuts for the rich political palatable.
But now that fewer people pay income taxes as a result of GOP policies, they’re being called lazy and dependent.
And thus the GOP's tax cuts are being used to make a case that the rich are overtaxed and that the less-rich are becoming dependent.
Which thus leads to a policy agenda of tax cuts for the rich and cuts to social services for the non-rich.