Friday, October 16, 2009

47% Will Pay $0 Income Tax in 2009

Source


With so many serious dangers to our democracy – Obama’s far left socialists, a possible leftist coup, an EMP attack, global islamofascism, it seems a stretch to include our tax system also as a danger. It is. Consider that 47% of “taxpayers,” 71,000,000 people will pay no income tax in 2009. Zero.

Worse. Many of these people are eligible for a “negative income tax.” That is, the federal government will give them one refundable tax break, rebate, or another. On this, see the Tax Policy Center:
Refundable credits such as the Earned Income Tax Credit (EITC), the refundable child tax credit (CTC), and the new Making Work Pay (MWP) credit will lead to negative average effective rates for the bottom two quintiles. The bottom quintile, for example, will receive an average income tax subsidy from the federal government equal to 10 percent of their pretax income. Rates will increase from 2.3 to 13.4 percent for the top three quintiles and to 17.9 percent for the top 1 percent of income earners.


These “free riders” have no reason to alter the tax system as long as their circumstance is unchanged. Since Democrats, the tax and spend party, are quite content with this system (even a higher negative tax), these free riders are their natural constituents. Thus, Democrats have a built in advantage at the polls.

With nearly half of the population paying no taxes, even if Republicans control Congress and the White House, the probability of correcting this incredibly unfair system is slim. Fear of a backlash from the 71,000,000 is highly persuasive.

So, what can be done? Nothing, except to vote at the polls for those who promise to reform the tax system, and through blogs, the conservative media, town halls, and demonstrations, ensure their seriousness.

3 comments:

  1. It is not true that people not paying taxes now have no interest in not raising taxes or in wasteful government spending because things went too far they might get taxed.

    In 1929 I am sure a lot more people paid no federal taxes. And even in 1935. But it didn't stay that way.

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  2. Sammy Finkelman is right. I pay just about no taxes, but I have no use for the present corrupt system, or for any centralized government. I used to think paying my taxes, when I did, was an honor. I long ago lost that trust in our government. They cannot even come up with the statute which says that we must file a 1040. The whole of the Federal Reserve and IRS are a scam and a control mechanism.

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  3. C'mon Rummel... Why pretend you're some come of moderate voice by substituting "democracy" when you in fact mean "unregulated capitalism"? Your Wiki politiucal views reads like the PNAC/Neocon membership stipulations, complete with that old chestnut AIPAC throws out in defense of Israel's occupation of Palestinian land, saying that "a leftist bias in parts of the academic world that selectively focus on problems in nations with high political and economic freedom (meaning Israel) and ignores much worse problems in other nations (meaning everyone else in the M.E,)". Right?

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