Jeanne Sahadi of CNN Money.com reports today that,
In 2009, roughly 47% of households, or 71 million, will not owe any federal income tax, according to estimates by the nonpartisan Tax Policy Center. Some in that group will even get additional money from the government because they qualify for refundable tax breaks.
The ranks of those whose major federal tax burdens net out at zero — or less — is on the rise. The center’s original 2009 estimate was 38%. That was before enactment in February of the $787 billion economic recovery package, which included a host of new or expanded tax breaks.
I agree with the liberal premise that a truly democratic society should benefit all of its citizens and not just a privileged few. But the reverse is also true: A democratic society should exact an obligation from all of its citizens and not just a targeted few.
It is decidedly undemocratic to force one half of a society to pay for the benefits afforded to the other half.
Inequitable taxation is merely another way of implementing Karl Marx’s famously flawed prescription for paradise on earth:
From each according to his ability, to each according to his needs.
3 responses so far ↓
1 Mary O'Keeffe // Sep 30, 2009 at 5:17 pm
Your headline would be correct if it read “Nearly 50% of households pay no federal income taxes.”
Your actual wording leaves out the critical words “federal income.”
Without those words, your headline is false.
Most American workers pay more in payroll taxes (FICA) than they pay in income taxes.
In addition, Americans who pay no income taxes pay federal excise taxes on gasoline and other purchases, as well as a variety of state and local taxes.
It is true that our tax system is overall progressive, but the progressivity of the income tax is far more pronounced than the overall progressivity of the tax system as a whole.
There are low-income elderly people who pay no federal income tax, but who still shoulder a significant tax burden when you consider the other taxes they pay, especially the property tax.
2 Mary O'Keeffe // Sep 30, 2009 at 9:27 pm
TaxGirl has a good discussion of some of these same issues here.
http://www.taxgirl.com/tax-or-no-tax/
3 Peter // Oct 1, 2009 at 7:17 am
Hi Mary,
You’re right. I changed the title.
Of course, these other taxes are not relevant to my point about burden sharing and democratic participation.
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