Tired of 47% not paying any taxes? Shame on us...

I hear this complaint daily. On talk radio, on Fox, on facebook, etc. The basic message is this:

"The 47% of us who pay no taxes are really getting over on the rest of us that do! It's wrong, it's un-American and somebody should do something about it!"

First off, let's get some specifics...

Its hard to think of a person in the US who's over 18 and doesn't pay some kind of taxes. Our income is taxed, we contribute to Social Security and Medicare. We pay sales taxes in most states. We pay taxes on gasoline, cigarettes, alcohol, etc. Homeowners pay property taxes. Residents of many local communities pay school taxes. And on and on. To be fair, the vast, vast, vast majority of us pay some taxes. The complaint I mentioned above is most commonly, in my opinion, applied to those who don't pay Federal Income taxes. Its also fair to say that the revenues that come from those "other" taxes like gasoline, cigarettes, property, school taxes, etc. don't go directly to the US Treasury Department.

Let's even agree that some percent of the 47% who allegedly pay "no taxes" may be breaking the law for tax evasion. To that rather small group that does break the law, they should be charged with crimes and given stiff sentences and pay all the back taxes, plus fines they owe. Period. Make them also pay for the costs of prosecuting them as well.

So now we're down to the actual percent of people who "legally" pay no Federal Income tax. Via our current tax code, there are exemptions and deductions which are perfectly legal. The Earned Income Tax Credit, can dramatically reduce the amount a lower income family is required to pay on their taxable income. Standard deductions can lop off over ten grand from a family's taxable income.

As a result, many families pay very little or no income tax at all. The suggestion that this group of Americans is somehow free-loading off the rest of us is unfair. These are typically lower income families who aren't living in $500,000.00 homes or vacationing in Monaco. Most of us wouldn't trade places these families. Would we? Still, despite most of these people who aren't paying any taxes following the laws, many look upon this group as free-loading, leech-like, parasites slowly but surely stealing all the good stuff from those of us who pay taxes.

This week, two of the Republican candidates for President made announcements on their tax plans. Herman Cain, he of the 9-9-9 plan, announced that those living under the poverty line would not pay any income tax. Understand that for 2011, this Country defines poverty in terms of a family of four as an income of up to $22, 350 in annual earnings. For those of you complaining that everyone should pay Federal income taxes, is it safe to say that Herman Cain's tax plan is not satisfactory?

Governor Rick Perry of Texas also had a big announcement this week about his plans to address taxes in the United States. He proposes a "flat tax" that features a 20% standard flat rate and a $1250.00 per family member deduction. Suggesting that a family of four who makes $50,000.00 a year, or less, would pay zero taxes. Is that acceptable to those who are tired of people not paying any income taxes? There are other concerns about Perry's plan such as the effect of dangerously reducing the amount of revenues into the Federal government, and the deceptive "simplicity" claimed by the Perry camp.

These plans will be tweaked over time and we'll see new ones from the other candidates before too long. Regardless of what they present, there will be some group of Americans who won't have to pay Federal income tax. Not because they're free loaders, deadbeats, parasites, etc., but because the various tax plans in this Country ALL provide for some measure of relief for those who earn the least among us.

I wish the mean spirited rhetoric I've heard about "this group" destroying the country would stop. I expect the RW media to engage in that kind of partisan fear mongering and hate speech, but when I see regular people saying it around town, on facebook, etc. it disgusts me. Maybe they haven't really looked into why so many aren't paying federal income taxes or in some cases very little. With higher real unemployment than we can accurately measure, of course incomes are down. If income levels are down, so will be the amount of taxes owed. Trust me, the quality of life is also down for this group of people. They're probably not heading out to the best restaurants in town this weekend. Probably having hot dogs, or tv dinners for the umpteenth time this month. The Liberal media plays its own version of this game, just not nearly as well. All people that are wealthy aren't selfish pigs. Its brutal from either side.

The contempt I've read and listened to from "regular folk" towards this target group is disturbing. It speaks to the growing polarization of our Right and Left. Our Wealthy and Poor. The Have's and the Have Nots. Its harmful, its mean and its doing damage to us as a people. While the media loves to play winners and losers, especially in politics, to see it creep into the fabric of our citizenry will be a thing to regret in time.

Its no way to treat each other.



Sources:

http://finance.yahoo.com/news/Nearly-half-of-US-households-apf-1105567323.html

http://www.taxationlawfirms.com/resources/tax/tax-fraud-and-tax-evasion/negligence-vs-tax-fraud.htm

http://www.irs.gov/individuals/article/0,,id=96466,00.html

http://en.wikipedia.org/wiki/Standard_deduction

http://www.hermancain.com/999plan

http://thehill.com/video/campaign/189059-cain-says-those-under-poverty-line-exempted-from-9-9-9-income-tax

http://en.wikipedia.org/wiki/Federal_poverty_level#Recent_poverty_rate_and_guidelines

http://www.rickperry.org/cut-balance-and-grow-html/#fix-tax-code