Millions of Americans Don't Pay Federal Taxes

[FRIZ]

FOX News Channel
Thursday, April 15, 2004

Millions of Americans Don't Pay Federal Taxes

http://www.foxnews.com/printer_friendly_story/0,3566,117253,00.html

Everyone paid taxes on April 15, right? Wrong. Tens of millions of Americans will pay no federal taxes this year.

Americans will file about 132 million tax returns this year and all will pay less in federal taxes due to three Bush tax cuts. But 44 million people will pay no federal taxes at all — that's the highest number in U.S. history and it translates to 33 percent of all tax filers.

Before the Bush cuts were implemented the number of filers who paid no federal taxes was 30 million, or 23 percent of all tax filers. These numbers are much larger than those from 1980 when the revolt against federal income tax rates began.

Who are the zero tax filers? They are the ones who have enough deductions and credits to erase their federal liability. That means after taking all legal credits and deductions, they will receive back every penny of federal income taxes withheld.

In addition to these 44 million zero-tax filers there are another 14 million whose incomes are so low, $20,000 or less, they are off the tax roles entirely. Add to that the dependents, children, family members and those who aren't taxed at all — it equals 122 million Americans who live completely outside the federal tax system.

 

[StuporDave]

This is news? I thought this was common knowledge.

 

[Michigander]

Oh, how the grass was so much greener when I was poor!

Now I don't have enough money to get enough shelters.

But I'm working on it!

And to think that the 16th Amendment was never properly ratified!

And "income" does not mean wages earned from employment within the US!

Or so I've read on the internet!

 

[7.62FullMetalJacket]

In all seriousness, when we have 51% riding in the wagon and 49% pulling the wagon, we are in deep doo-doo.

Next up: scaling down FICA taxes for the "poor"

 

[bad_dad_brad]

That makes me oh so very depressed.

I payed over 20 grand in just federal income tax last year. But the good news is I get $150 bucks back! HA HA HA HA!!! I payed 3 (3%) grand to my state. I have the usual Social Security burden. And I pay 7.5% in sales tax for every single thing I buy.

Yes I am upper middle class and I feel lucky for it. But for the Feds to take 1/5 of my salary just for income tax, because I am honest and legit, seems criminal somehow.

It would seem so much more fair if we all payed a straight percentage, let us say 15%. No deductions, no B.S., just 15%. We could reduce the IRS to an investigative department only.

It will never happen.

 

[JitsuGuy]

Of course it'll never happen... We shouldn't even presently be paying income taxes anyway... At least if you look at the intial purpose of the the 16th Amendment which ratification process is debatable to begin with.

J

 

[Jeff White]

7.62FullMetalJacket said;

Next up: scaling down FICA taxes for the "poor"

We already do that. It's called earned income credit and it essentially rebates the FICA payroll tax to low income workers with children. This is how millions of people actually get everything that was withheld in income taxes and more on their return. Don't worry though, they will still draw their social security benefits even though they never really contributed....

Jeff

 

[PATH]

Federal tax on the phone. Federal tax on gasoline. Federal tax on many things about or in your home. Oh if it ain't a tax well then it is a fee. The feds get your money somehow because the USA ain't for free.

Just look upon the little stub that comes upon your check. The feds take lots of money read closely when you check. It all goes in a general fund for none of the world to see, I'm sure you think they take too much, I'm sure we'd all agree.

They hide the tax most everywhere because they take as much as they can when they can cause living here ain't free.

Remember to pay your taxes! People on welfare and illegal aliens are depending on you!

 

[GigaBuist]

Yes I am upper middle class and I feel lucky for it. But for the Feds to take 1/5 of my salary just for income tax, because I am honest and legit, seems criminal somehow.

Not to impune your fine judgement, sir, but I do beleive you are forgetting the 7.5% that your employer was forced to pay on your behalf for FICA for you. Or Social Seurity, whatever it is. Theft by gunpoint is what it really is.

We're getting robbed. The only thing I can see that the Federal government acutally does for me is to provide my with defense. I do not in any way, shape or form blame the men in uniforms for this, but: I do not feel safe at home. There are foreign nationals out there to KILL ME. I want a huge amount of my tax dollars back. I want more MBRs and ammo in my home.

If we just GAVE BACK all this money to the averge decent income earning American and cut the welfare state off by the balls and got the people of this country to put a couple decent MBRs in each home.. well, I'd feel safer.

If every home was well equipped -- well, may God have mercy on the souls that try and kill us off. Lord knows what kind of fecal matter storm they'll find if they end up in my neighborhood.

 

[JoeSF]

And your Property taxes are?

 

[albanian]

If your jealous of the zero tax filers, all you have to do is get a job at Walmart for $7.50 hr and you could be one too!

I saw that news bit and I felt bad also because I know that the middle class will have to shoulder even more of the tax burden as our economy goes down the crapper.

People can not live on $7-8 hr without some help. If they had to pay taxes on top of that, they wouldn't have enough to pay for anything.

As we ship all our good paying manufacturing jobs to Mexico and overseas, we are cutting out our tax base. Who is going to buy all this stuff when everyone is making $8.00 hr? How can someone afford to buy a house or a new car on what they make at their service industry job? Without more good paying jobs, this country is headed for some SERIOUS trouble.

 

[Logan5]

I've seen some zero tax payers, they have a little shanty down between the railroad tracks and the river. Not envious.

 

[MarkDido]

"Who are the zero tax filers? They are the ones who have enough deductions and credits to erase their federal liability. That means after taking all legal credits and deductions, they will receive back every penny of federal income taxes withheld."


Not entirely accurate:

The above cited people will not only not pay any income tax, if they qualify for Earned Income Credit, the IRS will send them some of someone elses money! Such a deal!

 

[Jeff White]

Logan5 said;

I've seen some zero tax payers, they have a little shanty down between the railroad tracks and the river. Not envious.

I've seen some who live pretty well if they know how to manipulate the system. Property in someone elses name, low wage job, food stamps, medicaid card etc.

Many drive new vehicles (in mom or dads name so they don't own enough to have their benefits cut), nice home (often rented from a relative and subsidized by the federal govt, I even know of one here who has a pool). There is little incentive to work too hard if you know all the ins and outs of the system.

What ever happened to welfare reform?

Jeff

 

[Diggler]

Everyone needs to pay taxes, if for nothing more than to have them keep an interest in the system. We need to go to a straight percentage or a sales use tax. The more people that don't pay taxes, the less people that will care about cutting spending or cutting taxes in the future.

 

[Hal]

I've seen some zero tax payers, they have a little shanty down between the railroad tracks and the river. Not envious.

Former Senator Howard M. Metzenbaum ( and current multi-millionaire) is rumored to have paid zero in federal taxes in over 30 years. - - all legit

Ain't so much what you make or spend, it's how you make it and how you spend it.

 

[greyhound]

How can someone afford to buy a house or a new car on what they make at their service industry job?

That's been bothering me also, for a good while now.

But the again, so is this:

I've seen some who live pretty well if they know how to manipulate the system.

What a mess.

 

[wingman]

One of the greatest threats to our country is the continued loss of jobs to
third world countries and the flow of illegal and legal immigrants incoming
who are poorly educated. We are in a sense developing our own third world
here, two classes, wealth and working poor. Be happy if your only paying
$20,000 per year it will get worse.:banghead:

 

[Mulliga]

I'm a college student, and I don't make enough to pay taxes. Relax guys.

 

[spartacus2002]

Most folks don't know that the Earned INcome Tax Credit is a refundable credit, meaning if you qualify, then you get your tax refund back plus some free money from Uncle Sugar just for being poor.

They are getting paid for being low income families. Sounds very charitable, but that $ is coming out of my paycheck, your paycheck, and the paychecks of other productive American workers of middle and high income.

Don't see no authorization for THAT in the Constitution. Keep working -- millions on welfare are depending on you.

 

[7.62FullMetalJacket]

People can not live on $7-8 hr without some help. If they had to pay taxes on top of that, they wouldn't have enough to pay for anything.

If one only earns $8 per hour, then one should not be in a position to "live" on it. Most low wage jobs are for the young, just-starting workforce. In most cases a transient workforce.

But noe of that matters. There is no guarantee that you can raise a family, buy a house, and take that trip to Disneyworld every year. It does not exist.

Here is a news flash for you. In order for low wage earners to have a little "help" to get by, the government must take money from someone else (usually me, it seems) to pay for it. So in essence, I am now putting in work to benefit you and not me. How long will that last?

 

[Waitone]

According to Neal Boortz, both national political parties have engaged in a long term plan to remove people from the federal tax roles. Their objective is to get 51% of tax payers to pay no taxes. When that occurs there will be no opposition to tax increases.

While we are not yet there, he cites evidences of its effect polling that takes place during the debate on tax cuts. Polls taken show th majority of respondents do not think there should be a tax cut. . . . . an attitude that is in clear violation of human nature. Unless a goodly number of respondents pay no taxes and therefore don't have a dog in that hunt.

This is one case where I believe Boortz's analysis.

 

[MeekandMild]

I just saw the zoning request go out for an "affordable housing community" so that people who are now living in Federal rent-subsidised apartments can "buy" subsidised housing. The houses will be sold for between $100,000 and $110,000.

I didn't see anything thanking "the rich" for this however. Don't you think it would be nice if they at least sent a card?

 

[Highland Ranger]

They pay nothing and I pay tens of thousands of dollars . . . . . that's fair because I am after all privledged . . . . or is it just because I work hard and they don't . . . .

Yeah I'm thinking that's it.

We need one simple flat tax. No filing, no exceptions, money taken right off the top, filing by employers.

I know I'd pay less . . . .

 

[treeprof]

the middle class will have to shoulder even more of the tax burden as our economy goes down the crapper.

Demonstrably false. The middle class does not, and has not, shoulder(ed) the majority (or even a larger precentage) of the tax burden - there is ZERO evidence for that. The upper 1% of income earners earn a bit over 17% of all U.S. income but pay 1/3 of the total U.S. taxes. The top 5% earn less than 1/3 of total U.S. income but pay 53-55% of total taxes. Those numbers are going UP, even under Bush. Those falling between the upper 25% and upper 50% income classes (earning between abt $29,000 and $56,00 per year, roughly the "middle class") earn just under 25% of total income, but pay only abt 13% of total taxes. Their portion of the tax burden is going DOWN, and has been for some time.

Re shipping jobs overseas, etc,. per capita income (other than perioidic dips durng recessions, etc.) continues to rise? How can this be if all we are losing good paying jobs and creating low wage "service" jobs? These stories make nice news pieces on the big 3 networks or for goonion propaganda, but don't reflect the larger U.S. economy. Here's one illustration:

http://www.economist.com/agenda/displayStory.cfm?story_id=2454530

and more:

http://www.heritage.org/Research/TradeandForeignAid/wm467.cfm

http://www.ncpa.org/oped/bartlett/jan2099.html