America’s moochers: those who get $77,000 tax deductions on dancing horses

Or you could say those millionaires / billionaires who evade taxes with offshore bank accounts in the Caymans, Switzerland, and Bermuda are actually the ones who feel “entitled” and feel like “victims” and pay no income tax. Aren’t those people mooching off the system, off the federal government? They get all the benefits without the same financial investment that’s being made by working and middle class people.

Aevrage Household income before taxes.
chart: It’s the Inequality, Stupid | Mother Jones

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Meanwhile John Green has an excellent summary of who doesn’t pay federal income taxes and why:

How many people don’t pay federal income tax in the US?

Lots of people. The 47% stat is accurate, as long as you only count federal income taxes. (More than 85% of Americans under 65 pay either income tax, federal payroll tax, or both—and almost all Americans who own land and/or buy things pay state and local taxes.)

Who are these people?

Many elderly people who live off social security pay no income tax (social security benefits are only taxable if your total income is over $25,000 a year). Only about 25% of Americans over the age of 75 pay federal income tax, but it’s important to remember that most of them did pay federal income tax when they were working.

Also, many young adults pay no income taxes, because they are full-time students or have very low incomes. You can see a chart here that shows that about 30% of 18-year-olds pay federal income tax, while over 65% of people in their 40s do.

People living in poverty are also unlikely to pay federal income taxes. A married couple filing jointly making under $18,700 annually pays no income taxes. But it’s worth noting that in 1996, 99.5% of all nontaxable returns came from people making less than $30,000 a year. Today, that number is closer to 76%.

The fastest growing segment of Americans who pay no tax are those who earn between $75,000 and $100,000 each year. As explained here, there’s been a 12,000% increase in nontaxable returns in this income category thanks to middle income tax cuts and tax credits introduced by both George W. Bush and Barack Obama.

I would say bull to that one, though. Or, I wish — because it isn’t true in my situation. And btw, if Romney-Ryan get their way, all those tax credits and cuts would go bye-bye in order to finance the expansion of tax cuts they’d like to give the wealthy (which also happens to include themselves). More John Green:

[...] This is the case for most Americans: Romney’s comments implied that the same 47% of Americans pay no federal income taxes every year. In fact, the members of that 47% are constantly changing as people age into and out of the work force.

[...] In fact, the number of Americans who feel the government should provide health care and food to those in need is much higher than 47%. 76% of Americans (including a majority of Republicans) favor medicaid, the program that offers health care to the poor. A majority of Americans also believe medicare, the program that offers health care to the elderly, is worth its cost. And more than three quarters of Americans support the federal food stamp program that provides food to low-income and elderly people.

And here are more facts that are also relevant to Romney’s claim: Mother Jones: In light of Mitt Romney’s now-infamous statement about the “47 percent,” it’s worth taking a look at which states actually benefit the most from federal taxes.

Which states? Yep, the Mitt Romney supportin’, GOP lovin’ Red States. Why won’t they take more personal responsibility?

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