Tuesday, April 15, 2008

62 Million "Taxpayers" Will Pay NO Tax in 2008

The chart above is from the Joint Economic Committee's (JEC) report Overview of the Federal Tax System As In Effect for 2008, showing the distribution of taxpayers (including nonfilers and dependent filers) by marginal Federal income tax rate (MTR). The JCT staff estimates that approximately 62 million "taxpayers," or 37% of the 170 million taxpayers, will have no tax liability in 2008 and generally have a marginal tax rate of zero.

Q: Are you still a "taxpayer" if you don't pay taxes?

See related CD post here

(HT: Ben Cunningham)

12 Comments:

At 4/15/2008 3:10 PM, Blogger Marko said...

I would like to suggest a new battle cry: No Representation without Taxation!

I think that since I paid so much in taxes this year, I should get to vote, while people that paid no taxes should not get to vote.

I also think more people should not pay taxes. Maybe anyone making less than 50k a year shouldn't pay any taxes. Neither should corporations, because they don't get to vote (taxation without representation there!).

If I ever run for office, I want want to point out that I am kidding in this post. Sort of.

 
At 4/15/2008 3:22 PM, Anonymous Lars said...

Amazing I guess. Do you have historical data to show trends? Is this number as a % of total "taxpayers" going up. What is 62 million, 50%?
I agree with Marko, pay no taxes, no vote. Otherwise they can (and do) vote themselves tax free income.

 
At 4/15/2008 4:07 PM, Anonymous Anonymous said...

I would venture to say that the interests of businesses and wealthy Americans are generally better represented in government than those of the common voter. Those who have money to pay taxes have money to contribute to campaign funds and lobbying...

 
At 4/15/2008 4:44 PM, Anonymous Is said...

Really anon? Which interests are represented better? It obviously isn't financial.

 
At 4/15/2008 5:14 PM, Anonymous Anonymous said...

Do those making less than a certain amount get less protection under the constitution?

And do those making more get more protection?

Equality in opportunity does not equal opportunity in outcome.

 
At 4/16/2008 9:08 AM, Blogger Marko said...

If monied interests really had more influence than "the common voter", politicians would not need to spout populism, unions would not have the protections they do, and corporations would not pay taxes. Don't kid yourself, money can't buy and election, although it can buy the vote of many representatives (if we allowed unlimited campaign contributions, maybe that would change too).

I am not saying the constitution should not protect everyone, you would need an amendment for that and it would never pass. I am just saying we have been a bit to liberal with the franchise lately. If we only allow people to vote that pay taxes (I would also let people with military service vote), I am sure everyone would be better off. A good economy is good for the poor, too. It is even good for people looking for a handout, since wealthy people tend to be rather generous givers to the poor when not forced to do so.

Until then, come November, don't vote - let me decide!

 
At 4/16/2008 1:46 PM, Blogger Dave Narby said...

I really love this blog, but this is one of the few things that it not only gets WRONG, but EGREGIOUSLY WRONG.

Any reasonably informed person knows the income tax is a small part of the tax burden on citizens.

Payroll tax, sales tax, and the plethora of fees and surcharges (and every other way they take your money) are huge sources of revenue for the goverment, and extremely regressive ('po people pay way more of 'em).

What needs to be done is a major reduction in the tax code (like Reagan and Bradley did), which now stands at 6,700 pages!!!

This leads to MAJOR inefficiencies in markets, as every tax break designed to affect behavior (hybrid car tax break, etc.) causes someone to spend money in a way they normally wouldn't do, which detracts from market efficiency.

If you are a true free marketer (and populist), you would POINT OUT THE NEED TO SIMPLIFY THE TAX CODE and move towards sales taxes as a means of generating revenue.

Mark, you're falling down here. I expect better behavior in the future, I know you can do it!!!

 
At 4/16/2008 6:35 PM, Blogger juandos said...

"Equality in opportunity does not equal opportunity in outcome"...

Hmmm, Marxism rears its ugly head...

If 62 million taxpayers are paying nothing that means some 100 million plus are paying far to much in taxes...

"I think that since I paid so much in taxes this year, I should get to vote, while people that paid no taxes should not get to vote"...

There's something to be said for this sort of thinking... I like it...

This year's numbers show that both the income share earned by the top 1 percent and the tax share paid by the top 1 percent have reached all-time highs. In 2005, the top 1 percent of tax returns paid 39.4 percent of all federal individual income taxes and earned 21.2 percent of adjusted gross income, both of which are significantly higher than 2004 when the top 1 percent earned 19 percent of AGI and paid 36.9 percent of federal individual income taxes

 
At 4/17/2008 12:41 AM, Anonymous Anonymous said...

I think some of the comments lack a historical perspective. For many years after it was founded the USA had no federal income tax.

Blaming non-tax payers is just like blaming rich people who take tax deductions. The law is the law. Why should people not take tax deductions they are intitled to? Why should people pay taxes when they are not required to?

If you don't like the law blame congress.


Regarding moneyed interests vs the common voter, one good example is when Enron executives were allowed to select the head of the energy regulation agency.

 
At 4/26/2008 6:12 PM, Anonymous Anonymous said...

show me the law that says our wages are taxable. There is none.

 
At 1/28/2009 7:52 PM, Anonymous John Boy said...

Time for taxpayer revolt. We should stop funding this crap by staying home from work and/or refusing to pay our taxes. when you consider what we have lost this year and the amount of debt the government continues to place on our shoulders -- we're nothing more than indentured servants.

For every trillon dollars in new government spending, each taxpayer incurs another $12-15,000.00 in debt(note: must consider 60+ million will have zero tax liability this year and in fact, many will likely have "earned income credit"). Once you start doing the map the futility of our situation is evident. As it is illogical to surrender more of our money to those in power so that they may become even more powerful, a real patriot must make a stand and say "no more".

No more!!

 
At 1/28/2009 7:53 PM, Anonymous John Boy said...

TO BATTLE!!

Tis' time for taxpayer revolt. We should stop funding this crap by staying home from work and/or refusing to pay our taxes. when you consider what we have lost this year and the amount of debt the government continues to place on our shoulders -- we're nothing more than indentured servants.

For every trillon dollars in new government spending, each taxpayer incurs another $12-15,000.00 in debt(note: must consider 60+ million will have zero tax liability this year and in fact, many will likely have "earned income credit"). Once you start doing the map the futility of our situation is evident. As it is illogical to surrender more of our money to those in power so that they may become even more powerful, a real patriot must make a stand and say "no more".

No more!!

 

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