My biggest beef with the GOP tax plan …

… and nobody seems to be talking about it.

===========

Remember Mitt Romneys ill-timed observation about “47% of Americans”.

No, they weren’t deplorables, they were simply the folks who pay no Federal income taxes.

Well if the GOP tax plan goes through, the 47% will be be alive .. and well … and growing.

image
Source

Let’s start with some data…

=========

Romney was right on the facts … back in 2012, 46.6% of “tax units” (think: people) paid no Federal income taxes … or paid negative Federal income taxes (i.e. got a check in the mail for “refundable credits”).

The improved economy has driven that number down to under 45%.

When accosted for favoring the rich, a frequent GOP retort is that “the proposed plan increases the number of Americans who will pay no Federal income taxes. Source

It’s estimated that an additional 6 million tax filers will no longer have to pay any Federal income taxes. Source

That pushes the percentage of folks not paying Federal income taxes up to close to 48% … 47.8 to be precise.

And, the trend will push that number perilously close to the magic 50% majority mark … when folks (think: VOTERS) who pay no income taxes outnumber those who do.

Why is that a big deal?

The Tax Foundation — a nonpartisan tax research group – has repeatedly warned:

“While some may applaud the fact that millions of low- and middle-income families pay no income taxes, there is a threat to the fabric of our democracy when so many Americans are not only disconnected from the costs of government but are net consumers of government benefits.

The conditions are ripe for social conflict if these voters begin to demand more government benefits because they know others will bear the costs.”

English translation: Things are more rational when everybody has some skin in the game.

And, as Mitt intimated: More stuff is a no-brainer if somebody else is paying for it.

=========

P.S. Left-leanesr like to argue: “Yeah, they might not pay Federal income taxes but they pay payroll taxes – Social Security and Medicare.”

Beside the point that those are insurance programs and the payroll taxes are, in effect, premiums being paid …. note the last line on the data table above:

Almost 60% who pay no Federal income taxes (26.8% / 44.3% =  60.1%) get more than enough in refundable tax credits (i.e. checks in the mail from the IRS) to more than offset any payroll taxes withheld.

#HomaFiles

Follow on Twitter @KenHoma            >> Latest Posts

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s