Guess what? Rich people don’t pay most of the taxes. They pay all of the taxes! (VIDEO)

Guess what? Rich people don’t pay most of the taxes. They pay all of the taxes! (VIDEO)

CNBC reported that the Congressional Budget Office revealed that the top 40 percent of wage earners in America pay 106% of the taxes. What about the bottom 40%? What do they pay?

They pay -9%. Yes, that’s a negative in front of that nine.

The CBO’s formula accounted for taxes that are paid with “refundable tax credits,” basically government transfers of money back in the form of social security or food stamps.

CNBC wrote that the recent stock market gains have increased the wealth of the highest 1%, but questioned whether it was fair to have these kinds of transfers that create a negative tax burden. Basically rich people aren’t paying for most of the pie, they’re paying for all of it, plus tip.




  •  
  •  
  •  
  •  
26 comments
Austin Petersen
ADMINISTRATOR
PROFILE

Latest Stories

26 Comments

  • Jason Young
    December 12, 2013, 11:39 am

    So I guess that $400 tax bill I had last April was just my imagination. That was on top of what had already been withdrawn automatically over the course of the year. That also doesn’t include the various payroll taxes I paid. Plus various sales and property taxes and “user fees” that I paid to state and local governments. Their math is obviously wrong.

    REPLY
  • DanInAustin@Jason Young
    December 12, 2013, 12:18 pm

    It’s about federal income tax. Sales & property taxes do not got to the federal govt.

    REPLY
  • William@Jason Young
    December 12, 2013, 12:24 pm

    “various payroll taxes I paid”
    This would indicate you are either a contractor, self-employed, or something else along those lines. These have different rules than standard employment, where the employer pays a higher portion of the payroll tax. Self-employed, contractors, etc. will always need to pay out of pocket because Social Security and Medicaid taxes are non-refundable. Without the employer soaking up the larger portion of that, it can easily gobble up any potential refund, even with refundable credits (EITC, for example)

    Of course, this is all anecdotal, even if I’m wrong in my assessment. Your personal experiences do not account for the populace as a whole.

    REPLY
  • Freer@Jason Young
    December 12, 2013, 12:25 pm

    Do you believe you represent the entirety of your demographic, or are you one number in the aggregate statistic represented here?

    REPLY
  • Freer
    December 12, 2013, 12:35 pm

    I’m in the top 40%, the top 25% likely – I’m by no means rich. We’re a single-car family, we live in a decent apartment, we’re surely not starving. But I’ve paid as much in taxes this year as some people make working full-time, and the people that make that amount, live better than I do. I’ve seen it time and time again. They receive food assistance, medical assistance, child care assistance, pay practically no income taxes – all expenses I have. At the end of the day, we bring home about the same. Having been at both ends of the spectrum, it’s very discouraging.

    Logic says I should quit my white-collar job I’ve worked years to gain and develop skills for (I have no college education, luckily), that I continue to work diligently at every day, that I learn and expand my knowledge to compete in my profession every day – to go back to being a gas station clerk, an easy, do-nothing job that apparently is about to make $15 an hour, because those people have this illusion they make that kind of contribution to society.

    REPLY
  •  
  •  
  •  
  •  
LIVE NOW! CLICK TO VIEW.
CURRENTLY OFFLINE