Common Sense & An Open Mind

Advocating freedom of thought

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    "You must lay aside all prejudice on both sides, and neither believe nor reject anything, because any other persons, or description of persons, have rejected or believed it. Your own reason is the only oracle given you by heaven, and you are answerable, not for the rightness, but uprightness of the decision." T. Jefferson

Archive for the ‘taxes’ Category

A dangerous precedent

Posted by Free to Think on June 29, 2012

Today’s Supreme Court ruling on Obama’s mandated healthcare program has left me shocked and speechless. As stated by the Institute of Justice, “the Supreme Court has failed in its most basic duty,” abdicating  “its responsibility to enforce constitutional limits on government power.”

Possibly the saddest part about the willingness of Americans to relinquish their freedom and to expand our government is that it will not even achieve their intended goals. Our government has a 0% record of ever reining in the costs of anything, or ever creating a program with long-term economic sustainability.

 

Posted in curtailing freedom, Debt, Detrimental policies, Health care, Intrusive government, obama, Politics, supreme court, taxes | Tagged: , , , , | Leave a Comment »

We are the 53%!

Posted by Free to Think on April 18, 2012

Did you pay your income taxes this week? If so, then you’re the half of America that actually pays the cost of the federal government.

Close to half of U.S. households do not owe federal income tax.  The Urban Institute-Brookings Tax Policy Center reports that over 46 percent of households owed no federal income tax for 2011. Over a quarter of all American households (27.6%) paid no payroll taxes.

This week The Center on Budget and Policy Priorities tried to clarify some “misconceptions” of these startling figures. They point out that households that aren’t paying federal taxes are still paying through the nose for sales taxes, state and local taxes. Yes, but so are the rest of us. As if it should come as a great relief to us, they state, “In 2007, before the economy turned down, 40% of households did not owe federal income tax.  This figure more closely reflects the percentage that do not owe income tax in normal economic times.”

Does that sound much more reasonable to you?

As the price of government swells, just six-tenths of Americans are expected to shoulder the cost of federal roads, entitlements, education, Medicare, the military, the salaries of every federal worker from the post office janitor to the President of the United States, billions of dollars in interest on the public debt, and every other expense of federal government. We are the 60%!

It is frightening to think that fewer and fewer American taxpayers are expected to pay for an exponentially expanding federal government. The portion of the private sector that is actually producing wealth is expected to subsidize 144 million people who aren’t contributing to federal income taxes, and then have enough money left over to pay for the goods and services that keep our economy going.

This has not historically been the case. According to the Tax Foundation, since 1950 the percentage of Americans who didn’t pay federal income taxes has risen dramatically. Until the mid-1980’s, the percentage of tax returns with zero liability averaged in the teens to low twenties, occasionally spiking to the mid-twenty percent mark. In 1986 the figure was 18.5%, where it began a steady rise ever since.

Where does the majority of out federal tax dollars come from? In the latest report by the Tax Foundation, the top 5% of taxpayers paid approximately 58.7% of federal individual income taxes. The tippy-top of the scale, the top .01% of taxpayers contributed  17.1% of the nation’s income taxes. The average income for a tax return in the top 0.1 percent was $4.4 million in 2009, while the average amount of income tax paid was $1.07 million, indicating an average effective individual income tax rate of 24.3%.

There’s been a lot of discussion about who is paying their fair share and who isn’t. But regardless of your definition of “fair,” the most fair thing of all would be for every American to be unencumbered from an excessive and wasteful federal government.

Posted in Debt, Politics, taxes | Tagged: , , , , | 2 Comments »