Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Join the forum, it's quick and easy

Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

Would you like to react to this message? Create an account in a few clicks or log in to continue.
Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


+3
zimi31
Neno
Zuzu
7 posters

Taxes On The Rich Near 30-Year High: Tax Policy Center

Zuzu
Zuzu
Cain't Let Go Investor
Cain't Let Go Investor


Posts : 264
Join date : 2012-12-20

Taxes On The Rich Near 30-Year High: Tax Policy Center Empty Taxes On The Rich Near 30-Year High: Tax Policy Center

Post by Zuzu Sun 03 Mar 2013, 4:01 pm

Taxes On The Rich Near 30-Year High: Tax Policy Center
By STEPHEN OHLEMACHER 03/03/13 12:55 PM ET EST

WASHINGTON — The poor rich.

With Washington gridlocked again over whether to raise their taxes, it turns out wealthy families already are paying some of their biggest federal tax bills in decades even as the rest of the population continues to pay at historically low rates.

President Barack Obama and Democratic leaders in Congress say the wealthy must pay their fair share if the federal government is ever going to fix its finances and reduce the budget deficit to a manageable level.

A new analysis, however, shows that average tax bills for high-income families rarely have been higher since the Congressional Budget Office began tracking the data in 1979. Middle- and low-income families aren't paying as much as they used to.

For 2013, families with incomes in the top 20 percent of the nation will pay an average of 27.2 percent of their income in federal taxes, according to projections by the Tax Policy Center, a research organization based in Washington. The top 1 percent of households, those with incomes averaging $1.4 million, will pay an average of 35.5 percent.

Those tax rates, which include income, payroll, corporate and estate taxes, are among the highest since 1979.

The average family in the bottom 20 percent of households won't pay any federal taxes. Instead, many families in this group will get payments from the federal government by claiming more in credits than they owe in taxes, including payroll taxes. That will give them a negative tax rate.

"My sense is that high-income people feel abused by being targeted always for more taxes," Roberton Williams, a fellow at the Tax Policy Center, said. "You can understand why they feel that way."

Last week, Senate Democrats were unable to advance their proposal to raise taxes on some wealthy families for the second time this year as part of a package to avoid automatic spending cuts. The bill failed Thursday when Republicans blocked it. A competing Republican bill that included no tax increases also failed, and the automatic spending cuts began taking effect Friday.


The issue, however, isn't going away.

Obama and Democratic leaders in Congress insist that any future deal to reduce government borrowing must include a mix of spending cuts and more tax revenue.

"I am prepared to do hard things and to push my Democratic friends to do hard things," Obama said Friday. "But what I can't do is ask middle-class families, ask seniors, ask students to bear the entire burden of deficit reduction when we know we've got a bunch of tax loopholes that are benefiting the well-off and the well-connected, aren't contributing to growth, aren't contributing to our economy. It's not fair. It's not right."

On Sunday, Senate Republican Leader Mitch McConnell of Kentucky said Republicans are committed to reducing the budget deficit without raising taxes again. In a separate broadcast interview, White House economic adviser Gene Sperling called that position unreasonable.

The Democrats' sequester bill included the "Buffett Rule," named after billionaire investor Warren Buffett. It gradually would phase in a requirement that people making more than $1 million a year pay at least 30 percent of their income in federal taxes.

The rule targets millionaires who make most of their money from investments – capital gains and qualified dividends, which have a top tax rate of 20 percent.

"It's fairness," said Sen. Claire McCaskill, D-Mo. "We're not raising taxes with the Buffett rule as much as we are correcting an inequity in terms of, one guy can be working at one end of the hall and because he's working with hedge funds, he gets taxed at 20 percent. Another guy at the other end of the hall is on a salary at an insurance company and he has to pay (39.6 percent). That's just not fair."

On average, households making more than $1 million this year will pay 37.2 percent of their income in federal taxes, according to the Tax Policy Center. But there are exceptions.

For example, the Internal Revenue Service tracks tax returns for the 400 highest-paid filers each year. Those taxpayers made an average of $202 million in 2009, the latest year available. Their average federal income tax rate: 19.9 percent.

That's still higher than the tax rate paid by most middle-income families, but not by much.

The middle 20 percent of U.S. households – those making an average of $46,600 – will pay an average of 13.8 percent of their income in federal taxes for this year, according to the Tax Policy Center. Over the past three decades, the average federal tax rate for this group has been about 16 percent.

The Associated Press analyzed two sets of data to compare tax burdens over time.

The CBO produces data from 1979 to 2009; the center has overlapping data from 2004 through 2013. Both get tax data from the IRS, but they use slightly different methodologies to calculate federal tax burdens.

Still, their numbers track closely enough to make some general observations. For example, it is clear that for 2013, average tax bills for the wealthy will be among the highest since 1979. It also is clear that federal taxes for middle- and low-income households will stay well below their averages for the same period.

Liberals and many Democrats say rich families can afford to pay higher taxes because their incomes have grown much more than incomes for middle- and low-income families.

Average after-tax incomes for the top 1 percent of households more than doubled from 1979 to 2009, increasing by 155 percent, according to the CBO. Average incomes for those in the middle increased by just 32 percent during the same period while those at the bottom saw their incomes go up by 45 percent.

"You've got to think about the context," said Chuck Marr, director of federal tax policy for the Center on Budget and Policy Priorities, a liberal think tank. "We just had three decades in the United States where we had a tremendous increase in inequality."

The growing disparity in income is a big reason why tax bills for the rich are approaching 30-year highs, Williams said. As the rich get richer, a greater share of their income is taxed at the top rate, he said.

High-income families also have been targeted by tax increases this year, including a new tax law passed by Congress on Jan. 1 as well as tax increases in the president's health care law.

The new tax law made the federal income tax more progressive, increasing the top tax rate from 35 percent to 39.6 percent, on taxable income above $400,000 for individuals and $450,000 for married couples filing jointly. Lower tax rates on income below those amounts were made permanent. Also, tax breaks for low-income families first enacted as part of Obama's 2009 stimulus package were extended through 2017.

Conservatives say raising taxes again on the wealthy would reduce their incentive to save and invest, hurting long-term economic growth.

"Raising taxes hurts the economy, and raising taxes on upper-income individuals – whether those who work for salaries or those who save and earn capital income – always hurts the economy the most," said J.D. Foster, a fellow at the conservative Heritage Foundation. "Spite and envy are not sound bases for public policy."

Besides, Republican leaders in Congress say, one tax increase a year is more than enough.

"Let's make it clear that the president got his tax hikes on Jan. 1," House Speaker John Boehner, R-Ohio, said Friday. "This discussion about revenue, in my view, is over."

http://www.huffingtonpost.com/2013/03/03/taxes-on-the-rich_n_2801206.html?utm_hp_ref=business
Zuzu
Zuzu
Cain't Let Go Investor
Cain't Let Go Investor


Posts : 264
Join date : 2012-12-20

Taxes On The Rich Near 30-Year High: Tax Policy Center Empty Re: Taxes On The Rich Near 30-Year High: Tax Policy Center

Post by Zuzu Sun 03 Mar 2013, 4:02 pm

I find it interesting this came out of Huffington Post. Surprising they would print an article like this.
Neno
Neno
Admin
Admin


Posts : 10936
Join date : 2012-12-17
Age : 58
Location : Lone Star State

Taxes On The Rich Near 30-Year High: Tax Policy Center Empty Re: Taxes On The Rich Near 30-Year High: Tax Policy Center

Post by Neno Sun 03 Mar 2013, 4:07 pm

Just ready to be in that category at all cost.... ;)
zimi31
zimi31
Interacting Investor
Interacting Investor


Posts : 2430
Join date : 2012-12-21
Location : New York

Taxes On The Rich Near 30-Year High: Tax Policy Center Empty Re: Taxes On The Rich Near 30-Year High: Tax Policy Center

Post by zimi31 Sun 03 Mar 2013, 4:38 pm


My first call will be to the best tax attorney I can find!!! I'm so ready to be in the category, but I'd rather pay a lawyer than have the government throw it all into a black hole!!!
Neno
Neno
Admin
Admin


Posts : 10936
Join date : 2012-12-17
Age : 58
Location : Lone Star State

Taxes On The Rich Near 30-Year High: Tax Policy Center Empty Re: Taxes On The Rich Near 30-Year High: Tax Policy Center

Post by Neno Sun 03 Mar 2013, 4:55 pm

Yep, that is the sad part, that BLACK HOLE.
avatar
Carol D
Understood Investor
Understood Investor


Posts : 112
Join date : 2012-12-19
Age : 76
Location : USA

Taxes On The Rich Near 30-Year High: Tax Policy Center Empty Re: Taxes On The Rich Near 30-Year High: Tax Policy Center

Post by Carol D Sun 03 Mar 2013, 6:17 pm

so does that mean over $450,000 we pay capital gains tax and the 39.6 federal tax when it RV's?? Can't remember what the capital gains tax went up to.
lonelyintexas
lonelyintexas
NNP TEAM
NNP TEAM


Posts : 4285
Join date : 2012-12-19
Location : San Antonio

Taxes On The Rich Near 30-Year High: Tax Policy Center Empty Re: Taxes On The Rich Near 30-Year High: Tax Policy Center

Post by lonelyintexas Sun 03 Mar 2013, 6:52 pm

Carol D wrote:so does that mean over $450,000 we pay capital gains tax and the 39.6 federal tax when it RV's?? Can't remember what the capital gains tax went up to.
39.6 Highest Tax Bracket
3.8 Health Care Tax
.9 Millionaire Tax
44.30 %
LIT
avatar
Carol D
Understood Investor
Understood Investor


Posts : 112
Join date : 2012-12-19
Age : 76
Location : USA

Taxes On The Rich Near 30-Year High: Tax Policy Center Empty Re: Taxes On The Rich Near 30-Year High: Tax Policy Center

Post by Carol D Sun 03 Mar 2013, 7:37 pm

Thanks Lit!

No capital gains tax?

Gosh it's pretty sad what we'll have to pay in....
notazbad2000
notazbad2000
NNP TEAM
NNP TEAM


Posts : 5129
Join date : 2012-12-19
Age : 59
Location : The Sunshine State

Taxes On The Rich Near 30-Year High: Tax Policy Center Empty Re: Taxes On The Rich Near 30-Year High: Tax Policy Center

Post by notazbad2000 Mon 04 Mar 2013, 4:53 am

Well I say let's get there, and we will see where they take us from there!


_________________
TAZ

The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy.
Martin Luther King Jr., Strength to Love, 1963

elandur
elandur
Getting It Investor
Getting It Investor


Posts : 65
Join date : 2013-01-04

Taxes On The Rich Near 30-Year High: Tax Policy Center Empty Re: Taxes On The Rich Near 30-Year High: Tax Policy Center

Post by elandur Mon 04 Mar 2013, 12:41 pm

You really think you were going to be able to keep all that "ill-gotten" gain, did you? After all, "you didn't do that!"

Note also that this year the government is projected to take in more in taxes than ever before in the history of the country. And yet we are still running a trillion dollar deficit. All because those rich folks, whose taxes are now near a 30 year high, aren't paying their "fair share?" The President says we don't have a spending problem - we have a "revenue" problem - i.e., we need more taxes! And yet, every week it seems he comes out with a new government program he wants to fund. There isn't enough money in the world to satisfy the spending urges of this administration.

Of course you could be like Mayor Bloomberg and believe that the United States has an infinite supply of money because people will lend us an infinite amount (they have no choice, he says). If you believe this, you believe something that has never existed in the history of the world and never will. It is more likely that more and more people overseas will start thinking like this gentleman (http://www.learnbonds.com/u-s-treasuries-infinite-supply-infinite-prices/) and instead that infinite amount of money will become an infinite amount of toilet paper.

Sure hope our investment becomes worth something before that happens! It would be ironic if we found the Dinar trading 3-1 against the dollar at this time next year simply because one dollar was worth only $0.0002849 in today's currency.

Sponsored content


Taxes On The Rich Near 30-Year High: Tax Policy Center Empty Re: Taxes On The Rich Near 30-Year High: Tax Policy Center

Post by Sponsored content


    Current date/time is Sat 24 Sep 2022, 2:32 pm