inHonor of Tax Day in the Us - Who Actually Pays the Taxes?

[The_Kitchen_Guy]

In honor of tax day,

WHO ACTUALLY PAYS THE TAXES?

In figures for tax year 2003, as released by the IRS in Fall of October, 2005, we see this pattern:

• The bottom 50% of wage earners pay 3.46% of the federal burden.
• The top 50% pay 96.54% of the federal tax burden.

The top 50% of wage earners must be the millionaires, right? Wrong. More like "thousandaires." The top 50% were those individuals or couples filing jointly who earned $29,019 and up in 2003. If you're making over $30,000 per year, you are in the top 50% of wage earners and are considered "rich" in the discussions of making the rich pay their fair share of taxes.

Further broken down, the top taxpayers are:

• The top 1% of wage earners pay over a third, 34.27% of all income taxes. (They earn $295,500 and up.)
• The top 5% pay 54.36% of all income taxes while earning 31.18% of all the income.
• The top 25% pay 83.88% while earning 64.86% of all the income meaning...
• The top 50% of wage earners pay 96.54% of income taxes collected while earning 86.0 of all the income.

Before you get all huffy and tell me that those percentages don't add up - yes they do. Remember, the top 50% of tax payers includes the to 25%, 5% and 1%.

The bottom 50% of wage earners? They pay 3.46% of the tax burden - consider that for a moment - the top 1% pays over ten times the amount of taxes that the bottom 50% of wage earners pay.

I'm not making this up - these figures are published by the IRS annually and change very little in percentages.

If you really work hard and go over $100,000 in income, then you get smashed with another reward for hard work - the alternative minimum tax. It was enacted in 1969 to ensnare 155 wealthy Americans who were paying little or no taxes. Since it was not indexed for inflation, it catches more and more Americans every year who are shocked to learn that their standard deductions are no longer valid. Not very fair if you consider what $100,000 was in 1969 compared to now.

How does our tax system work? Read the story of http://www.victorboc.com/radio/PostRestaurantTaxStory.htm as written by http://www.victorboc.com/radio/PostRestaurantTaxStory.htm and read on his http://www.victorboc.com/radio/indexHome.htm.

 

[BethCooks4U]

Amazing. Why is that not a surprise.

 

[The_Kitchen_Guy]

Think about that stat for a moment - The Top 5% of Wage Earners pay 54.36% of all income taxes.Over HALF our income tax is paid by 5% of the wage earners!I'm most certainly not in that elite group but tell me, does that sound fair?

 

[raebates]

Great illustrations, KG! My grandma (I miss her) and I had big discussions about this. She was always ticked off that the rich people were always getting tax breaks. Unfortunately, much as I loved her, I'm pretty certain even these illustrations would be lost on her.

 

[Paige Dixon]

See why I love to earn "under the table"?

While I know I'm in the minority, I'd love to see an end to income tax and replace it with higher sales tax. That way, the savers aren't penalized, the spenders are. However, that would be very bad for our PC customers, wouldn't it?

 

[jrstephens]

Well, I don't have to worry about being in the group of $100K or more, so, I I guess I am not paying the taxes!HAHA!

If you ern more you pay more just like if you earn more you spend more.

 

[ltkacz]

I always sayOne day "we" will all wake up and realize something needs to be changed.

We actually reward people (via government help) for being unproductive members of society, yet punish those who are productive. What's wrong with that?!

 

[jrstephens]

We actually reward people (via government help) for being unproductive members of society, yet punish those who are productive. What's wrong with that?!

Do you mean you do not agree with Welfare??!! I am astonished!! It irritates me to see people who don't work driving expensive cars and living in better houses than me know I am footing the bill!

 

[The_Kitchen_Guy]

One day "we" will all wake up and realize something needs to be changed.

One day, employers will stop withholding taxes from paychecks, and Americans have to actually write a check to the IRS.

The next day will be the second American revolution.

I'm astounded every year when people gleefully say, "I'm getting a $4,000 refund!" like they just screwed the government out of 4 grand. When I point out that it's their money anyway, they look at me like I have carrots coming out of my ears.

 

[genburk]

One day, employers will stop withholding taxes from paychecks, and Americans have to actually write a check to the IRS.

I bet I have written more checks to the IRS than anyone here - if I haven't written more checks, I know I have paid more by written check than anyone else here. You would think we were in the higher tax bracket, just by what we owed and paid.

I'm astounded every year when people gleefully say, "I'm getting a $4,000 refund!" like they just screwed the government out of 4 grand. When I point out that it's their money anyway, they look at me like I have carrots coming out of my ears.

I see no carrots or anything else for that matter.

They only give you your own money when they want you to have it.... if you owe them, they will keep it ALL.... trust me... I know. and NOOOOO !! we don't call them to see if they got it all, they haven't called us, we are NOT calling them to look in our file to double check. There is truth in the old saying.. "Let sleeping dogs lie." Even if it takes a FEW MORE years to take it off the credit bureau reports. It took 6 years to pay and at least 4 years to remove the liens and counting.....3...4...5...6....who knows

 

[genburk]

Do you mean you do not agree with Welfare??!! I am astonished!! It irritates me to see people who don't work driving expensive cars and living in better houses than me know I am footing the bill!

Tell me about it . NO Don't.. I know all about it....I work with several people whom are on wic (the one where you get free food for the pregnant women and young children). I don't have a problem with it, if you NEED it (certain situations or just bad luck FOR AWHILE)

BUT when I am paying a house payment each month to the government (in addition to my regular taxes ), and we pay for everything we need, and don't have ANYTHING new, but they have a new car, go to the tanning bed, get their eyebrows waxed, wear brand name clothing from the local Mall, eat out every week (not the dollar menu either), get a $4-5 lunch everyday (while I pack PB & J) and then complain that they have to buy one container of formula a month, "because they just don't GIVE you enough to go the whole month"

I get FUMED

 

[The_Kitchen_Guy]

I see no carrots or anything else for that matter.

You're not the first one to ever say that about my head.

 

[genburk]

I guess that is a good thing !! except for the anything else not being there... he, he, he

 

[chefann]

I'm astounded every year when people gleefully say, "I'm getting a $4,000 refund!" like they just screwed the government out of 4 grand. When I point out that it's their money anyway, they look at me like I have carrots coming out of my ears.

That cracks me up, too. The government keeps our money all year, and gives us no interest on it when they finally give it back. But if we owe them and are late, we have to pay interest and penalties.

My BIL is an accountant and works for a small company. He changes his withholding several times a year based on estimates of what his family's tax responsibility will be for the year. His goal is to get within $50 so that he's not getting a huge refund, but he also doesn't have to write a big check.

 

[genburk]

So true on the HUGE interest and penalties

For instance, let's say you owe about $17,000

They charge enough interest and penalties to equal your portion to pay back about $40,000-50,000