Incline Left!

Just another WordPress.com site

The Poor Pay No Taxes Myth

Poverty

Poverty (Photo credit: Teo's photo)

This is a trope you continue to hear from mentally diminished Fox parrots.

They argue that since the middle class and wealthy and pay income taxes, all those poor people who pay no income taxes are getting a free ride.

Wrong.

A new study of state taxes from the Corporation for Enterprise Development  shows that the poor pay a much higher percentage of their income in taxes — sometimes six times more than the parasitic caste (thanks David Brin) that makes up the top 1%.

The Assets and Opportunity Scorecard breaks down by state what the tax rate burden is for both the top 1% and the poorest 20%.

Kevin Drum at Mother Jones has taken the data and created an enlightening table:

Soaking the Poor, State by State

The most fair places to live? Washington, DC, Vermont, South Carolina and New York.

The most unequal? Nevada, South Dakota, Florida and Washington state.

On average (Mississippi) the poor pay twice as much in all taxes than the extremely wealthy.

February 7, 2012 Posted by | Uncategorized | , , , , , , , | Leave a comment

Small Businesses Not So Small

Keith Olbermann had a great segment on his program last night:

http://www.msnbc.msn.com/id/32545640

Visit msnbc.com for breaking news, world news, and news about the economy

It seems that The Chicago Tribune, the billionaire Koch Brothers and multi-billion dollar Bechtel Corporation are considered small businesses under the definition being used by the Republicans.

All this in their fevered campaign to try to continue the gravy train for the rich.

Facts:

  • Only 3% of businesses would be affected by ending the tax breaks for the rich.
  • The definition of “small business” used by Republicans have up to 100 owners — no consideration of income, number of employees or payroll is considered.
  • S-Corporations, as defined by Wikipedia, do not pay any federal income taxes. Instead, the corporation’s income or losses are divided among and passed through to its shareholders. The shareholders must then report the income or loss on their own individual income tax returns.
  • The richer you are, the more likely you are to file on your taxes this way in what are also called pass-through companies.
  • There are 15,000 S-Corps earning an average of $150 million a year.
  • There are 18,000 S-Corps Partnerships that pull in $137 million annually.
  • 750,000 businesses in total would see any change in their tax share.

In other words, multimillionaires own dozens, hundreds or thousands of these S-Corporations.

The point: Real, actual small businesses will not be harmed by letting the wealthy pay their fair share of taxes.

That’s just the lie the Republicans and their Blue Dog Democrat allies are pushing to make you believe that your neighbor’s business  is going to go under by the oppressive tax burden.

It’s just not true.

-Chris

September 23, 2010 Posted by | Deficit, Politics, Republicans, Tax Debate | , , , , , , , | Leave a comment