Debunking the conservative claim half the people pay no federal taxes

[spedtr90]

Excellent column in St. Paul MN paper. I used the information from it to write this reply to a friend who keeps bringing this up:

About those lazy slackers who pay no federal taxes. Check your returns over your adult life. You most likely were one. If Social Security and Medicare are “reformed” you certainly will be one.

Those who do not pay federal income tax have incomes below the threshold for taxes due and most are below 25 and above 65. They have “skin in the game” for most of their lives.

Below age 25 – they are students or hold entry level positions. They are working and striving to be middle class – saving to buy a home and be able to afford raising children. They will be paying federal taxes as their incomes increase, and paying for many years.

Over 65 – retired and living on a smaller income. At some point many rely most on Social Security. They have paid federal taxes for many years.

FACT: 90% of all individuals spend most of their adult lives paying federal income tax.

FACT: When Reagan signed the Tax Reform Act of 1986 he said, “Millions of working poor will be dropped from the tax rolls altogether.” It called it a “sweeping victory for fairness”. Apparently he had no problem with people not paying in times when their incomes were very low. Why do you?

http://www.twincities.com/lotterman/ci_19217960

[quaker bill]

1. There is a simpler argument using their stuff

Any conservative worth their salt will tell you that there "is no point taxing businesses because they just pass the cost on to the consumer".

The argument is useless for the purpose they deploy it, as if you take their point, taxes cost businesses nothing because they recover all the oost from the consumer. So in a sense, if you actually take their point, it makes more sense to collect taxes from businesses because there are fewer of them and since they recover all the costs, it does no harm.

But here is where it gets interesting. If businesses pass "all the costs" on to the consumer, then folks who do not make enough to owe income tax, are beyond any doubt "consumers". They are the ones picking up the costs the businesses are passing on.

The bottom line is that taxes are taxes. Part of the cost of every product you buy is taxes. Unless you live a hermits life, off the grid and self sufficient, you pay taxes. Like the Matrix, they are everywhere and cannot be avoided.

Money cycles and at each turn of the cycle taxes consume a portion. If you are in the system using money in any fashion, you are paying taxes.