47% will pay no federal income tax (CNNMoney.com)

[eppur_se_muova]

By Jeanne Sahadi, CNNMoney.com senior writer
Last Updated: October 3, 2009: 2:58 PM ET

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The ranks of those whose major federal tax burdens net out at zero -- or less -- is on the rise. The center's original 2009 estimate was 38%. That was before enactment in February of the $787 billion economic recovery package, which included a host of new or expanded tax breaks.
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Of course, income taxes don't tell the whole story. Workers are also subject to payroll taxes, which support Social Security and Medicare.

When considering federal income taxes in combination with payroll taxes, the percent of households with a net liability of zero or less is estimated to be 24% this year, according to the Tax Policy Center's estimates.

A key reason why there is a zero-liability group at all is because the U.S. tax system is progressive. Those who bring in more money pay more than those lower down the income scale to support government functions such as national defense and social safety nets like Medicaid for those in need. That progressivity can be dialed up or down.

"Some think it's too progressive. Some don't think it's progressive enough," said Roberton Williams, a senior fellow at the center.
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more: http://money.cnn.com/2009/09/30/pf/taxes/who_pays_taxes/index.htm?cnn=yes




Surprisingly for CNN these days, this is a reasonably informative (if brief) article.

[Captain Hilts]

1. Unless you earn more than $95K, you pay more in payroll taxes. nt

[eppur_se_muova]

3. Interesting comments follow the article ...

Alanna Nelson2:13 pm
This article is incorrect in a few areas, but horrifically wrong on one point: the wealthier do NOT pay more towards social safety nets. Medicare taxes amount to a maximum of 2.9% (for self-employed; others pay less). Social security is the most expensive safety net, and there is a cap set at $106,800, which means that someone making 13 million dollars a year is paying less than one percent of their income towards the program and the SAME dollar amount as someone making $107,000/year. In the meantime, a self-employed person making $50,000 would be slapped with a 12.4% SS tax plus the 2.9% Medicare. This article makes is sound like half the country is freeloading while only casually admitting that the numbers are much lower when payroll taxes are included. This doesn't even begin to account for all of the special tax breaks awarded to the super wealthy and largest businesses, or the fact that they can deduct their private jets and $100 steak dinners.

[SoCalDem]

2. Aand yet, when America was at its zenith..envy of the world..

[bbinacan]

6. I notice no mention

of the Kennedy tax cuts. Interesting.

[Deja Q]

7. That unaccounted-for drop hovering just before the '1967' mark...

Yeah, that is weird.

[bbinacan]

9. And yet no mention

of when Kennedy took office.

[doc03]

4. How do you get in that 47%? What am I doing wrong

I paid $7500 in Federal taxes and nearly $6000 in SS, Medicare and State Tax. You add in sales and property tax and you have another couple grand. I guess that's what I get for working for a paycheck.

[gratuitous]

5. It's the difference between income tax and payroll tax

And the Republicans, hand in hand with the popular media, count on casual observers to not know or notice the difference.

[doc03]

8. The Payroll taxes are to finance SS, the income tax is

to fund the operation of the Federal government. I'm really doing something wrong I am paying out the ass for SS and I am also one of the 53% paying Income Tax. I don't make over 106,000 a year so I am paying the max into SS and Medicare and also into Income Tax. That's my reward for being part of the disappearing middle class.

on edit: There are also some that want to tax my company paid health-care benefits on top of all the other taxes. That's why the middle class is disappearing I guess.

[PSPS]

14. The General Fund routinely borrows from Social Security

Reagan began this back-door tax increase on workers. He slashed income tax rates on the rich and doubled the payroll (FICA) tax. Then the government "borrows" from the social security fund, which is funded by the FICA tax, to pay for its general expenses. For republicans, it's an ideal arrangement because it both lowers taxes on their rich supporters and bankrupts one of their most loathed social programs -- Social Security.

[wickerwoman]

10. Lose your job?

Not paying income tax is one of the many perks.

[doc03]

12. I did I was laid off back in April and have

little chance of being recalled. I am just riding out this mess until I'm 62 next April.

[Taitertots]

11. Social Safety nets are regressive taxes

You pay 8% up to some certain value.

The rich pay less than a fraction of a percent of their wages to support social causes.

[Gabi Hayes]

13. this is the epitome of right wing, disingenuous trash. unless, of course, the article

mentions what others here have said: unless you make less than 400 bucks a year, you MUST pay the SS tax, which is still a federal tax

the pugs love to try to blur that distinction, hoping the idiots, like the Teabaggers, think that those who don't pay an income tax (mostly people who don't make shit, or the ultra rich) don't pay any taxes at all

Idiocracy rules, and CNN/Fox are the mouthpieces of those who sit at the top of the Brawndo Pyramid of credulous stupidity