CNN Money says "45% Don't Owe U.S. Income Tax" for 2010

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Real Estate Agent

"45% of taxpayers won't pay any taxes this year either because they don't make enough money or they have claimed enough deductions ... on the other hand, 99.7% of people making over 1 million will pay taxes; a few super-wealthy will not pay taxes due to elaborate tax planning."

Check out the article which breaks down those who don't owe taxes by income bracket. 68% of those making less than 50,000 won't pay any income tax.  CNN Money article, 45% Don't Owe US Income Tax

"The official tax rate for corporations is 35%, but IRS says most companies pay on average 27.5% and some pay less ... mostly due to the many tax breaks given by our government ... President Obama wants to close the tax loops, but this will likely require a major tax system overhaul."

Without enough information about how the system really works and how cutting tax breaks will really affect the economy (which none of us is likely to know or be able to ascertain), it's difficult to determine a fair and workable solution. Unfortunately, we are trusting politicians of all political parties who are responsible for the current economic problems in the first place, to come up with solutions - not likely to be successful.

On the surface, it seems that a standard tax rate for everyone might be useful. We could also eliminate IRS tax audits (and nasty auditors) which would likely save the government money and might do a lot to boost the economy. This is just one area that the government needs to fix in order to resolve the national debt crisis.

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Rainer
6,776
Jason Belmonte
Prudential Fox and Roach - Atglen, PA
www.cecilcountyhomesearch.com

The government will never accept the flat tax rate. The reason, it makes sense!

Apr 18, 2011 10:25 AM #1
Rainmaker
367,837
Kevin Robinson
Twin Falls, ID
High End Vacation Homes

And a huge portion of those 45% will always want someone else to pay for them.

Apr 19, 2011 09:09 AM #2
Rainmaker
367,837
Kevin Robinson
Twin Falls, ID
High End Vacation Homes

Congratulations this post is now featured in the Tea Party group of AR.

Apr 19, 2011 09:10 AM #3
Rainmaker
353,982
Dale Terry
Yadkinville, NC

The tax system is not about putting money in the government bank accounts, it is about giving graft to the special interests that created  the IRS and the tax code.  It will be hard to change.

Apr 27, 2011 08:21 AM #4
Rainmaker
159,180
Walter Hayes
Keller Williams of Southwest Missouri - Joplin, MO

The reason you'll likely never see a flat tax or a fair tax is quite simply because the politicians would then also have to pay. They take advantage of the loopholes they create which is why those that want to raise taxes have no problems doing so. Their taxes won't go up because they pay taxes, by and large, in a totally different way than most people. People with a job pay their taxes before they get to spend any of it on anythinge. People with businesses of any kind, including us by the way, pay their taxes after they spend money on what's left. Don't believe me, send in your 1040 next year without doing a Schedule C. Just pay taxes on your gross income.

Apr 27, 2011 12:14 PM #5
Rainer
189,754
Virginia Cheezum
F. C. Tucker Company - Indianapolis, IN

I am a HUGE fan of the flat tax idea.  Everyone pays the same proportional to what they make.  Simple, fair, and clear.  But it won't happen, I'm afraid. 

Jun 13, 2011 10:06 AM #6
Rainmaker
1,088,106
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

This is not surprising to me....and a GREAT reason for Bachmann to enter the GOP 2012 presidential discussions

Jun 15, 2011 06:52 AM #7
Rainmaker
697,641
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

Pretty ridiculous.  Everyone needs to pay their fair share even if that amount is only $1000 or so. 

Jun 26, 2011 10:56 AM #8
Rainer
126,403
Ron Brown
Division of Pinnacle Capital Mortgage Corp - Puyallup, WA
MLO-270845 VA/FHA Specialist, Alpine Mortgage Planning NMLS 81395

Unfortunately, Americans are bad at math, and have very short attention spans.  If we are ever going to get a flat tax, it will begin in States with Initiative rights for the people to introduce it.

Jun 29, 2011 05:02 PM #9
Rainmaker
589,518
Than Maynard
Coldwell Banker Heart of Oklahoma - Purcell, OK
Broker - Licensed to List & Sell - 405-990-8862

Soon we will hit that point where more than 50% of the population doesn't pay taxes and then the tipping point is crossed and we are doomed.

Jul 18, 2011 11:32 AM #10
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Rainmaker
160,070

Colleen McConnell

Tallahassee Retired Realtor
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