Punch line: Chasing after a couple of thousand rich dudes seems like a wild goose chase to me.
I’m more concerned about the 50% of folks who don’t have any skin in the game … who pay no taxes and think other folks should pay more.
Old refrain: “Don’t tax you, don’t tax me, tax the guy behind the tree.”
Tax Policy Center analysis reported in The Atlantic …
76 million people won’t legally owe individual income taxes in 2011
The vast majority of this group is poor. They won’t owe individual income taxes because they won’t earn a lot of money to start, and various exemptions, like the earned income tax credit, will wipe out any tax liability … maybe even getting them a refundable credit – a check in the mail from the Feds.
Among families making more than $100,000, there will also be half a million tax units that will also pay no income tax.
And, 7,000 millionaires will pay no individual income tax.
How can that be?
Couple of ways:
- Tax-free income … think gov’t bonds
- Catastrophic losses … e.g. mansion gets wiped out by a hurricane, very high uninsured medical expenses
- Discretionary deductions … think charitable deductions
- Fraud and other shenanigans …
Tags: millionaires, Rich, Taxes, Who doesn't pay income taxes
The Homa Files 
September 26, 2011 at 2:39 pm |
I do not pay income taxes. Why not? Because I am an entrepreneur. I gave up my high taxes along with my salary and healthcare in order to start a business.
September 26, 2011 at 2:59 pm |
David Plouffe laid out the logic for the Buffet Rule yesterday on Fox News Sunday – there are 22,000 “millionaires” who pay less than 15% in taxes.
This sounds a lot like the argument behind the alternative minimum tax…
September 26, 2011 at 11:45 pm |
It amazes me that to date no one has picked apart the current “fair share” political tactic that emphasizes the “percent” tax bracket while ignoring the real dollars paid. The Irs.gov website shows the real taxpayer contribution stats for 2008.
56 million w/income $1 to 25k………. paid $ 131 to $1,000.
34 million w/income $25k to 50k…….paid $ 1,483 to $3,031
30 million w/income $50 to $100k…..paid $ 4,740 to $7,326
13 million w/income $100k to 200k…paid $15,573
3 million w/income $200k to 500k…paid $55,475
3/4 million w/income >$500k………….paid $165k to 6.5 million
Looks like some people are paying MORE THAN their fair share, especially considering almost 50% pay NO tax and/or get rebates.
Smile-On!