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"The key number he cited is that 47% of Americans "pay no income tax." The statistic is true as far as it goes, but it doesn't come close to reaching the finish line. In fact, its shock value derives from the legerdemain of focusing solely on the federal income tax. This misleads Romney and his audience into thinking that the group in question is mostly people on a lifelong dole.

The truth is that the vast majority are people who are working or who have worked in the past. Their ranks include millions of Americans who are now retired, living on Social Security and Medicare benefits they paid for throughout their working lives. Many others are those who were booted into culverts by the economic crisis and are today struggling to get back on the road.

The 47% statistic comes from the Tax Policy Center, a project of the Urban Institute and Brookings Institution, which crunched IRS data to get it. TPC's actual finding is that 46.4% of "tax units" — that's IRS filers and non-filers combined — will have zero or negative U.S. income tax liability for 2011. (Romney would have been better advised to say 47% aren't paying income taxes now, rather than that 47% "don't pay taxes," as if that's a permanent condition.)

The worst flaw of this figure is that it ignores the burden of other federal taxes shouldered by many in the zero-income-tax group.

Principally, these are payroll taxes, which are levied this year on the first $110,100 of wage income for Social Security and all wage income for Medicare. Indeed, four-fifths of all taxpayers pay more in payroll taxes than federal income taxes as a percentage of income. The crossover point is about $100,000 in wage income. (By definition, the statistic counts the employer's share of payroll taxes as a burden on the worker.)

What this means is that a large share of all households paying no income tax are working households with substantial payroll tax bills. They're the antithesis of people who can't be convinced to "take personal responsibility" for their lives."

http://articles.latimes.com/2012/sep/19/business/la-fi-hiltz...


The above may not be news to some, but I heard the 80% figure on TV today and had to check it out. Sure enough, it's true...
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...its shock value derives from the legerdemain of focusing solely on the federal income tax.

And a rec for using the word "legerdemain."

Gosh, before long people might think that there are at least some reasonably intelligent denizens on the PA board.

;-)
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Nobody was/is referring to those who work, but you knew that already didn't you? Just spin the context and continue the lie.
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Sorry, but it wasn't me -- my contribution here was only to cut and paste.
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But remember Social Security Taxes are given back to you in an amount based on what you pay in. (At least for now), so if you are contributing to Social Security, you will get a check once you turn 65 (or whatever the age you decide to start taking) and will receiving benifits back until the day you pass away.

So if you expect to receive Social Security you need to pay in first.

The income tax is different as you don't get the same direct benefit for paying in. You can't say "I paid in my $15,000 a year for 30 years, now start sending me a monthly, check", based on income taxes.

But you do get into one problem I have and always have had with the tax code...there's just so many of them. I don't think the average American has any idea how much they pay in Federal taxes a year outside of income taxes and SSI. There's no reason the tax code should have more pages than the Torah, Bible (old and new) and Koran combined.
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Nobody was/is referring to those who work

So you guys are bitching about 47% who don't work? WTF, you're allowed to vote aren't you?
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Principally, these are payroll taxes, which are levied this year on the first $110,100 of wage income for Social Security and all wage income for Medicare. Indeed, four-fifths of all taxpayers pay more in payroll taxes than federal income taxes as a percentage of income. The crossover point is about $100,000 in wage income. (By definition, the statistic counts the employer's share of payroll taxes as a burden on the worker.)

What this means is that a large share of all households paying no income tax are working households with substantial payroll tax bills. They're the antithesis of people who can't be convinced to "take personal responsibility" for their lives."


Bluegrits,

respectfully this sort of logic opens up another can of worms......the surpluses from the payroll tax goes into the general fund.......income taxes, corporate taxes etc are supposed to make up the general fund......the interagency debt from the payroll taxes have propped up the budgets for several decades.......

if you found Romney on a good day a few years from now and he was finally honest with the public.....he'd be able to tell you what a sack of it is he truly was during his campaign......

Dave
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"Principally, these are payroll taxes, which are levied this year on the first $110,100 of wage income for Social Security and all wage income for Medicare. Indeed, four-fifths of all taxpayers pay more in payroll taxes than federal income taxes as a percentage of income. The crossover point is about $100,000 in wage income. (By definition, the statistic counts the employer's share of payroll taxes as a burden on the worker.)"


--

Actually, NO


they are payroll deductions - the feds take out your SS and Medicare, and tell us it is carefully put in a lockbox so when you retire, YOUR money will be there to pay you SS and Medicare benefits.


Right?

the feds are 'carefully investing it' in T-bills while it sits there in your personal lockbox, ready to pay you full benefits you are ENTITLED TO when you decide to retire.

Got it?

It's not a tax!

No more than your 401K or IRA 'contribution'.


----

You forgot to speak 'governmentese'. Remember, ObamaKare is just 'penalities'....not an illegal tax...just a penalty if you don't comply.

SS is just a 'contribution' to your retirement account.

Kapisch?

Thus, the statement is true. 47% of all earners don't pay federal taxes.



t.
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You forgot to speak 'governmentese'. Remember, ObamaKare is just 'penalities'....not an illegal tax...just a penalty if you don't comply.

SS is just a 'contribution' to your retirement account.

Kapisch?

Thus, the statement is true. 47% of all earners don't pay federal taxes.


tele's jealous of people, with 3 kids, making $30,000 a year.
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