NYT: Americans Pay ‘Far Less’ In Taxes Than In 1980s

[DonViejo]

Source: TPM

NYT: Americans Pay ‘Far Less’ In Taxes Than In 1980s

TOM KLUDT 9:33 AM EST, FRIDAY NOVEMBER 30, 2012

An anaylsis from the New York Times on Friday indicated that Americans in 2010 paid "far less" in combined federal, state and local taxes than they did in the 1980s.

From the report:

But in fact, most Americans in 2010 paid far less in total taxes — federal, state and local — than they would have paid 30 years ago. According to an analysis by The New York Times, the combination of all income taxes, sales taxes and property taxes took a smaller share of their income than it took from households with the same inflation-adjusted income in 1980.

Households earning more than $200,000 benefited from the largest percentage declines in total taxation as a share of income. Middle-income households benefited, too. More than 85 percent of households with earnings above $25,000 paid less in total taxes than comparable households in 1980.

Lower-income households, however, saved little or nothing. Many pay no federal income taxes, but they do pay a range of other levies, like federal payroll taxes, state sales taxes and local property taxes. Only about half of taxpaying households with incomes below $25,000 paid less in 2010.

Read more: http://livewire.talkingpointsmemo.com/entry/nyt-americans-pay-less-in-taxes-than-in

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Link to NYT's complete article:

http://www.nytimes.com/2012/11/30/us/most-americans-face-lower-tax-burden-than-in-the-80s.html

[closeupready]

1. It doesn't matter whether they do or do not.

What matters is that in any measure to balance the federal budget, the pain is shifted to the upper income earners.

They are paying less taxes than their secretaries, they benefited handsomely from their nonsense Iraq War that their own party promoted and executed, etc. They reneged on their promise that they would create jobs in exchange for tax cuts.

So, no, it doesn't matter who's paying more and who's not paying more. Totally immaterial.

[bemildred]

2. And the taxes they do pay are far more regressive than in 1980.

That is, the middle class still gets screwed, and the rich are paying a lot less.

[PSPS]

3. Agenda much?

Notice how this "analysis" conveniently leaves out the payroll tax. Nevertheless, while the income tax burden may be a few percent less for "most" households, it's WAY less for the top 5%. The top marginal rate was cut from 70% to 28% in 1986 by Saint Ronnie and the country's been in a death spiral ever since. Add to that the elimination of the distinction for tax purposes between short-term and long-term capital gains (they are all taxed at the low "long-term" rate now, including gains made from microsecond ownership with program "frontrunner" trading.)

Other flaws:

- "Inflation adjusted" isn't an accurate measure since the BLS started doing tricky things with their "basket."
- Average household income has actually declined since 1980.
- Average household now needs two people working to eek out a living. In 1980, a single wage earner could support a household.
- Healthcare costs have mushroomed exponentially since 1980.
- Percentage of income spent on energy (heating, gasoline) has also mushroomed since 1980.

There's much more, but you get the point. There are many good reasons to raise taxes, especially on the coddled parasite class. But this piece seems to be laying the groundwork for general acceptance of another giveaway to the rich.

[burnsei sensei]

4. The American impulse to suspect taxation

has nothing to do with democracy or freedom.
It is all selfishness, nothing else.

[surrealAmerican]

5. What a disturbing article.

Most of the interviews with people of various income groups had one thing in common: the subjects believed things that were contradicted by their own experience, but rather than modify their beliefs, they discounted their experience.