When people heard that Mitt Romney’s federal income tax rate was about 15 percent, the immediate reaction of many was to assume that their own rate was higher. The top marginal rate is 35 percent, after all, and the marginal rate on a couple with $70,000 in taxable income is 25 percent.
The truth is that most households probably pay a lower rate than Mr. Romney. It is impossible to know for sure, given that he has yet to release his tax return. What is clear, though, is that a large majority of American households — about two out of three — pays less than 15 percent of income to the federal government, through either income taxes or payroll taxes.
This disconnect between what we pay and what we think we pay is nothing less than one of the country’s biggest economic problems.
Read the whole thing here.
this is referenced:
ReplyDeletehttp://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=205
in 1980, personal tax was 9% of gdp and corporate was 2.4 - total 11.4. in 2011, personal is 6.3 and 1.3 - total 7.6. A drop of ONE THIRD.
I think that explains the defecit. Taxes are down ONE-THIRD since 1980.
Leonhardt goes on to say:
ReplyDelete"Yet taxes in the United States are quite low today, compared with past years or those in other countries. Most important, American taxes are not sufficient to pay for the programs that many people want, like Medicare, Social Security, road construction and education subsidies.
What does this combination create? An enormous long-term budget deficit.
Together, all federal taxes equaled 14.4 percent of the nation’s economic output last year, the lowest level since 1950. Add state and local taxes, and the share nearly doubles, to about 27 percent, according to the Tax Policy Center in Washington — still lower than at almost any other point in the last 40 years."
Leonhardt also says that Romney's Dad would have paid almost 50% while the rich today pay less than 30%. The 1% earn 23.5% of GDP. 20% of that is 4.7% of GDP.
ReplyDeleteSo the rich have bought politicians instead of paying their taxes. Obviously a shrewd investment.
I am convinced that the New Deal only came about because the powers that be were afraid of a upheaval from either the right or left. And the Great Society was only brought about by riots. Until the rich are afraid that they will be killed and eaten, they will not share any crumbs with the rest of us.
3 part plan:
1) Restore Glass-Steagall.
2) Restore 1979 tax rates.
3) More Money for education.