48% Pay No Income Tax

Wed May 22 2013

A student made this post regarding the Apple Testimony about corporate tax rates. 

We as individuals pay at a minimum 10% to taxes. If you take into account all the money that Apple avoided paying taxes on, the 6 billion they did pay in taxes would be less than 5% paid to taxes. Apple is not the only corporation doing this. Last year and the year before if was Microsoft and HP that were under the microscope. Last year GE paid ZERO.

As a matter of fact the first asentence is grossly incorrect. About 48% of Americans pay zero income tax at all, the same as GE paid last year. 70%  all income taxes are paid by the highest ten percent of wage earners. but don't take my word for it, here is the link to the national taxpayer union site and table

http://www.ntu.org/tax-basics/who-pays-income-taxes.html

Add to this the fact that we have the 

Earned Income Tax Credit

 

This is anegative income tax. Those that meet certain qualificaitons actually receive a check back from teh government. Ie, we have potentially 48% of the vote with no skin in the game, no money at stake vis a vis what the government does. This is by design of course. If the Democrats can create a permanent 51% voting majority that pays no income tax, they shold have a permanent hold on  all elections. If Texas slides intothat category, the Repbulicans will likely never win the White House again. 

Believe me there are millions of people that have adjusted their lifestyles so that they 

pay no income tax

qualify for the ETC

Live in subsidized housing

and have zero zip nada plans to change

Apple in fact paid $6 B in taxes, and following the tax code that Carl Levin authored, avoided taxes by having locations in Ireland.  An Apple official noteas the Apple tax return is two feet high. What a disgrace!  Politicians think all money is their money, not so. This is why people invest in companies like Apple, to make more money, and hopefully keep some of it. 

I think everyone should pay some income tax as the student thought, otherwise politicians are beholden to no one, free to concoct whatever vote buying schemes they can. and the tax code is just that a mammoth vote buying scheme. 

Steve forbes had it right, a ten percent flat tax, no IRS, period, but neither party will vote for that as they both wan the patronage that dispensing favors via the IRS allows. 

Comments

[cary kingsley]

The name escapes me but I recall a federal judge who said (in a tax case) every American has a duty to pay tax's and a personal obligation to pay as little as possible.