High-Earning Households Pay Growing Share of Taxes

As President Barack Obama pushes to raise income taxes on high earners, opponents are seizing on data that indicates these U.S. households already pay a large and growing share of taxes, even compared with high-tax European countries. And a new congressional study concludes that the percentage of U.S. households owing no federal income tax climbed to 51% for 2009.

Continue to read here...WSJ Article

How does a country survive when it subsidies and effectively makes 51% of its tax eligible citizen's exempt from truly paying into the system? You see, I say truly paying into the system because they are paying taxes throughout the year (as long as they are not getting paid under the table that is). The problem arises at the end of the tax year and they file.

51% of tax-paying citizens receive a negative tax bill. A study was conducted and seen in the article where the United States of America has the most progressive tax rates among the 24 other countries examined. Now, please take that last claim to be a grain of salt until I find the source (WSJ doesn't link it) and we can examine what countries were included in the study.

And while many will state that those tax payers are still paying into Social Security, Medicare and the likes; which is a bit of slight of hand to say so; neglect to point out that they are in a negative tax bracket. They receive more money back from the government via tax breaks, tax "credits", subsidies, social programs, etc.

I think while this is being discussed I am going to research just exactly the cost of services are and than we can compare and see if the 51% are paying in enough to pay for all the services they receive or if they truly are siphoning off the system. Down the rabbit hole I go!

Good looking out. Taxes are such a tricky subject as they are necessary to run a country but they are gathered corruptly and distributed unjustly in this country. This needs to be addressed seriously as a nation. A star and flag for you my friend.

reply to post by Fear_Fear


It is a touchy subject and one that will probably fall to the "Tit for Tat" antics that is prevalent here on ATS. But there will be some very astute minds that will debate this (If they catch it before it disappears into "Not shocking enough headline hell!")

It raises serious questions:

Why do we subsidies 51% of the population so expansively that they end up in a negative tax rate?

Why and how does this happen? (Tax code and Congress to thank for that one!)

While we see these articles every year and studies are being conducted, when will the country get serious that we have an ineffective and highly corrupted tax system?

Many presidents have spoken that they will tackle this issue but either let it fall to the way side or Congress quashes it with fear and slogans of "The rich will just get richer" or "Children will die" or best "They want to kill Grandma!"

Please note we are talking about personal income tax here folks. Not corporate taxes, investment taxes, etc. Respect the scope and only venture where it is relevant is all I ask.

It blows that 51% of our citizens live so poorly that they don't earn enough to pay income taxes while the top 10% live lives of luxury. I think if you equalize the pay, then you will equalize the taxes. Can't have it both ways and expect to escape the problems we have.

Poor folks pay plenty of other taxes which in the end probably mean they pay a higher total of their income in taxes then do the top 10%.

I also think we should just print the money we need rather than borrow it and eliminate taxes alltogether .

This type of taxation is described in plank 2 of the communist manifesto. It creates a divide and conquer mentality between the populace and seems to work precisely that way.

Originally posted by sligtlyskeptical
It blows that 51% of our citizens live so poorly that they don't earn enough to pay income taxes while the top 10% live lives of luxury. I think if you equalize the pay, then you will equalize the taxes. Can't have it both ways and expect to escape the problems we have.

Poor folks pay plenty of other taxes which in the end probably mean they pay a higher total of their income in taxes then do the top 10%.

I also think we should just print the money we need rather than borrow it and eliminate taxes alltogether .

You do know what printing more money; money that is backed by nothing tangible does to its value right? More dollars in circulation means that the dollar you hold today is worth less and less.

Also, 51% aren't living so poorly as you think. Their income is quite decent but when you factor in all the local/state/federal/sales taxes it eats away at it quite quickly and they are left with little expendable income. I make decent amount of money and I see roughly 65% of it after payroll taxes. 35% is taken by the Government. I am far from rich. I am far from well-off too. I make due with what I have and what I have responsibilities for.

Think really hard about how much taxes you pay. Taxes on your car (oops sorry fees), taxes on your food, taxes on your utilities, payroll taxes, taxes on your gasoline, taxes and taxes and taxes. Don't get me wrong, just as the first poster said above, taxes are needed to run basic services and I am not opposed to paying into a tax system. Just opposed at this corrupt tax system we live under that is designed to play favorites and divide the people.