We constantly get told that we are not paying up enough of our fair share to help the liberal wealth redistribution schemes and scams buy them votes, but a new study by the CBO shows something quite different:
(CNSNews.com) – The top 40 percent of households by before-tax income actually paid 106.2 percent of the nation’s net income taxes in 2010, according to a new study by the Congressional Budget Office.
At the same time, households in the bottom 40 percent took in an average of $18,950 in what the CBO called “government transfers” in 2010. Taxpayers in the top 40 percent of households were able to pay more than 100 percent of net federal income taxes in 2010 because Americans in the bottom 40 percent actually paid negative income taxes, according to the CBO study entitled, “The Distribution of Household Income and Federal Taxes, 2010.”
“When refundable tax credits, such as the earned income tax credit and the child tax credit, exceed the other federal tax liabilities of the households in an income group, those households are said to have a negative average tax rate,” said the CBO study. “In its analysis, CBO measured individual income taxes net of refundable credits,” it said. In 2010, the CBO determined, American households in the bottom 40 percent paid negative amounts in income-tax dollars and a negative average income-tax rate.
Much of the progressivity of the federal tax system derives from the individual income tax,” said the report. “In 2010, the lowest quintile’s average rate for the individual income tax was -9.2 percent and the second income quintile’s rate was -2.3 percent.” “A group can have a negative income tax rate if its refundable tax credits exceed the income tax otherwise owed,” said the CBO report.
The households in the top 20 percent by income paid 92.9 percent of net income tax revenues taken in by the federal government in 2010, said CBO. The households in the fourth quintile paid another 13.3 percent of net income tax revenues. Together, the top 40 percent of households paid 106.2 percent of the federal government’s net income tax revenue. The third quintile paid another 2.9 percent—bringing the total share of net federal income tax revenues paid by the top 60 percent to 109.1 percent. That was evened out by the net negative income tax paid by the bottom 40 percent.
And that skew, the wealth transfer, is going to tilt even more that way when Obamacare goes nuclear on our sorry asses. if you think this sort of highway robbery is a good thing, you are a moron. And why can’t we ever get a breakdown that shows the actual money these people get vs. how much of the money collected gets pissed away by Leviathan’s bureaucracy?
Look at it this way: we have a system where out of a group of 50 people in a room – broken down by the tax demographic shown by the numbers in the CBO above – one of these people pays more than all the others combined. But the injustice doesn’t end there. There are 25 people that not only don’t pay any income taxes, but they get to take away money. So the person getting ripped off and the others that pay some or taxes, but get nothing back, are basically outvoted by the people getting money back. The Greeks figured out that was going to be the end of their experiment with democracy over 2500 years ago.
A system where people that not only don’t pay taxes, but they get to collect money from those that do, and that gives them equal representation when electing the scumbags that put these sorts of systems in place, is not just evil, it is downright destructive in the long run, because it is simply not sustainable. And we are seeing that happen finally as most modern western nations with such progressive tax & spend collectivist systems are slowly running out of other people’s money to keep them afloat.
That’s why the democrats are turning us into a banana republic. If you have no skin in the game, you don’t care if the game is wrong. That’s why I feel that people that don’t pay taxes, or worse, get money back from those that do, shouldn’t get a vote when it comes to policies that allow them to get even more money from others. We need a flat tax. Everyone should have to pay. It will fix most of our problems with the tax & spenders and their agenda.