47% of households pay no taxes, enjoy “free” services

This statistic is sickening considering how much of a bill half the country is flipping for the other half. In fact, the most sickening part is probably the rest of the stats in this story that the top 10% of income earners pay 73% of the taxes. Furthermore, this number is only going to rise under increased spending and programs such as ObamaCare.

Yahoo News reports:

WASHINGTON (AP) — Tax Day is a dreaded deadline for millions, but for nearly half of U.S. households it’s simply somebody else’s problem.

About 47 percent will pay no federal income taxes at all for 2009. Either their incomes were too low, or they qualified for enough credits, deductions and exemptions to eliminate their liability. That’s according to projections by the Tax Policy Center, a Washington research organization.

Half the country is using government services that the other half is paying for. Where is the personal stake for every individual? It should not matter your income, even if you are paying $10 in taxes, everyone should be paying something. You wake up every morning under the banner of freedom provided by the US military yet half the country doesn’t pay to fund the military.

Of course, there are some who, for reasons of disability or other, cannot work and do not pay taxes and that is to be expected.

The result is a tax system that exempts almost half the country from paying for programs that benefit everyone, including national defense, public safety, infrastructure and education. It is a system in which the top 10 percent of earners — households making an average of $366,400 in 2006 — paid about 73 percent of the income taxes collected by the federal government.

Wealthy households are constantly berated and demonized by President Obama yet they are the people paying his salary and flipping the hefty bill for his enormous social programs.

Also, just to note, someone will tell me I am advocating for raising taxes since I am calling for people who currently don’t pay taxes to begin flipping some of the bill.

Let me be clear, I am not advocating raising taxes, I am advocating spreading the tax burden, at least in some capacity, to all households in the country, not the 53% currently paying for the services of the other 47%. However, trying to see a politician run on a platform of “making everyone pay taxes” is somewhat laughable and will never happen.

Ideally the fair tax achieves this by taxing consumption, not income.

  • “the top 10% of income earners pay 73% of the taxes” So does that mean that because the top 10% of the income earners make more money and thus pay more taxes? If so well how bad is that? You wouldn’t expect me to pay the same amount of dollars as someone making 10 times as much as I am? I wouldn’t be able to afford it.

    If someone comes up with enough deductions to not pay taxes, I call that smart, not bad. Hell I made over 60K and only paid 8% of that in taxes because of deductions.

    I am ok with the fair tax. Taxing consumption sounds a lot more fair then the way it is now.

  • JD

    It is amazing all the stats you have for a bill that hasn’t even taken effect yet. But then again, we all think we control and can predict the future.

  • JD, huh?

    What are you talking about? These are 2009 stats, as in taxes being filed by April 15th, 2009.

    Not some future stats dependent on the ObamaCare debacle.


    “You wouldn’t expect me to pay the same amount of dollars as someone making 10 times as much as I am? I wouldn’t be able to afford it.”

    Of course not, Kendale, you’re missing the point of that stat. It is extremely disproportional to have the top 10% flipping that much of the tax bill when 47% of the country pays nothing. That is the point I’m trying to make.

    What if the 47% paid something, albeit small? The top 10% might have to only pay 65% of the tax bill and it would be divided more evenly.

    Here’s the thing, soaking the rich only works if we encourage people to become wealthy. President Obama does not encourage wealth-building as stated by the policies he supports and proposes. He supports wealth redistribution.

  • Nate,

    I would love it if ALL US citizens were motivated to become wealthy. Yet I know it will never happen. I do believe by Obama making it easier financially for more people to earn a college education, that does, in a sense, motivate people to earn more money via earning degrees. Now if only Obama created a stir in high school students, encouraging them by how much money there are in scholarships and grants for HS students with good grades to go to college and earn degrees which will give them a brighter future. I know there are those who dish out such motivation yet it is NOT motivating these youngsters.

    MTV and BET motivate these youngers, to be flippin idiots chasing a dream of making it big via music and reality television programming.

    Nate, give me some ways that YOU would motivate poor people to work hard to become wealthy people. I mean I know there are many things to TRY, but HOW ON EARTH DO WE “GET R DONE?” I try to motivate the youth in my county all the time, and they seem motivated initially, but when it doesn’t come easy, they give up. I am truly at a lose, I REAAAAAALLY want to motivate people to do better with themselves and their lives, but its not as easy as you may think.

  • P.S.

    I have even offered to pay out of my own pocket and do research to get grant and scholarship money to send local kids to school and they STILL turn it down.

  • I lead by example by being a successful college student who grew up in the same neighborhood as these lost kids, I still live here. They see that I make good money and live a lot easier than their other role models (the street drug dealers who are in and out of prison, who either eventually get murdered, get life in prison, or go poor after they give up drugs and realize they can no longer pursue a career because of their criminal history).

    WHAT CAN WE DO NATE?

  • D.D.Mao

    Kendale…….From what you say is it a mindset that if one in the neighborhood makes it with a good job or continues his education he “Sold out” to the system? I believe it was Bill Cosby who came out with this peer pressure theory being one of the causes of a high drop out rate which leads of course to the other problems of high unemployment,drug use or dealing, and generation after generation dependence on the government for support.If we can get the dropout rate down it would not only improve the unemployment and crime rate but probably lower the number of the fatherless families in the poor communities.

    You ask what we can do? If we had the answers they would have been used years ago and Lyndon Johnsons “War On Poverty” would have had an exit strategy.Unfortunatly the young people seem to put more weight on making it through hip-hop performers and athletics than education.They say that by 2049 America will be a majority of non-whites.Well they better find the answer because the socialist system President Obama is placing in motion isn’t going to sustain an entitlement society when you run out of productive people to use as a source to supply this system.We part ways here where I understand it is your belief that the government should supply a free COLLEGE education TO EVERY YOUTH. As you yourself said many don’t want it and would only use the money for other interest and bookkeeping NOW is a nightmare as far as loans are concerned no less expanding it.

  • D.D.Mao

    And then you are ALSO FIGHTING AGAINST FORCES WHICH HAVE TO JUSTIFY THEIR EXISTENCE AND DON’T WANT THE POOR TO BETTER THEMSELVES OR JUST WANT A PIECE OF THE PIE.These include the DEMOCRATIC PARTY,JESSE JACKSON,AL SHARPTON and any non-governmental organization which COOKS IT’S BOOKS IN ORDER TO GET SUBSIDIZED BY THE GOVERNMENT.

    I have recently talked with a friend who lives in Conn. and she told me of an organization which collects furniture,clothing and any other necessities a person needs to set up a house. They then are in contact with a drug rehab center which they give these items to when the center deems the person ready to set up his own apartment.They don’t supply money or look for apartments but let the client get a job(through the drug rehab center)and help them get started.This method along with churches,independant chariable groups and family was how it was done for 150 years BEFORE EXPANSIVE AND EXPENSIVE GOVERNMENT CAME ALONG TO MAKE PEOPLE DEPENDENT AND JUSIFY IT’S EXISTENCE.

    THERE ISN’T A LIMIT ON HOW BIG THE PIE CAN BECOME WHEN YOU PERSUADE PEOPLE TO BE PRODUCTIVE AND CONTRIBUTE BUT IF YOU SIMPLY HAVE SOCIETY BELIEVE THAT THEY CAN EXIST BY GOVERNMENT BENEVOLENCE YOU WILL VERY SOON RUN OUT OF PIE.

  • DD Mao,

    In other words, this country is hopeless. Only thing you can do is fight for what you want out of life and pray for the rest. lol I mean those who want to can actively do what they believe is hopeful in the meantime, or not. To each their own. I am not totally disgusted with my life right now. Its not easy, I work my arse off but i dont work ALL the time, I do have fun with life, but I do need more money to see the world and enjoy it more, but that is why I am still in school. More education = more money with less hours of work put in. Plus helps save for the golden years, so they are actually golden and not stuck trying to survive on medicaid and crappy government checks. Wish me luck! 🙂

  • D.D.Mao

    “In other words, this country is hopeleass.”……Kendale

    Kendale……Those are your words not mine.Yes those that are hopefull can still do what they want.In fact you NEED TO DO SOME ACTIVITY THAT YOU FEEL BETTERS YOUR LIFE AND LIFE IN AMERICA IN GENERAL.My wife and I recently retired so our days of contributing to the TAX BASE are over.We will now spend our time volunteering to some local groups we are interested in.This country is in your hands and your childrens hands and if there is one thing I learnt it can be molded according to the peoples wishes.You not only have our best wishes but our prayers.

  • Thanks DD, I appreciate that. I dont really think the country is hopeless but I do believe that life will always be a battle against the evils, it will never be easy, but as long as people have the heart to fight, fight they shall, and I’m a fighter. I am not much of a political fighter but I do fight against those who choose to be the “hand out people” and that whole mindset and lifestyle, which is a tireless and endless battle.

    I suppose the only place I’ve looked for the handout is education. I mean I did use Pell Grants as handout while I could. Plus this year, I dont know if it was a mistake on the part of turbotax but instead of receiving a “tax credit” I got a complete 100% “tax refund” for like $3k of what I spent towards my education last year. I’m pretty sure that I was not supposed to get a refund of that money, but a write off, but turbotax stated that if they are incorrect in the way they prepare my taxes, they will be taking responsibility for it, and not me.

    I suppose a hand out for education is not completely just, but supplying more grants and tax cuts for education is not just a hand out, but a smart move for the US in the sense it will produce more educated citizens. I know the counter argument is that there are those who attempt to receive grant money for education and spend it on other things, but as long as those who do so are penalized and have to pay that money back, then I find that counter argument worthless.
    If people do utilize the money that way, the government surely has the ability to garnish wages, garnish bank accounts, garnish tax refunds, ect.

    🙂

    Sorry for the ramble……but it is how i feel, and its an important matter in my life.

  • myownmind

    Nate,

    “Half the country is using government services that the other half is paying for.”

    I thought that all of the country was using government services.
    Surely Henry Kravis gets his post.