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Overall tax burden is the lowest it's been since the 50s. Part is due to the massive tax cuts under Obama (and Bush), but to be fair, part is also due to the bad economy and more people falling into circumstances where they pay less tax.
This news comes from the nonpartisan Congressional Budget Office, which just issued the latest update of its invaluable series on “Distribution of Household Income and Federal Taxes,” this time covering 2008 and 2009. The CBO’s statistical series now covers the 30 years since 1979. The average rate paid by all households for all federal taxes combined — including income taxes, payroll taxes, excise taxes (on such things as gasoline, tobacco and alcoholic beverages) and individuals’ share of corporate income taxes — hit its highest rate during the period in 2000, just before President George W. Bush began signing the tax cuts that are scheduled to expire next year (unless Congress extends them again).
The all-household rate was 22.7 percent the year before Bush took office, then declined to 19.9 percent in 2007 (lower than in any year before he took office) and plunged again to 18 percent in the recession year of 2008. That was the lowest until the following year, Obama’s first, when it dropped again to 17.4 percent.
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The CBO figures show rates have declined substantially for all income levels. In fact, the only group for which rates did not reach a 30-year low in 2009 was households in the top 1 percent of all earners.
Even those affluent households paid an average total federal tax rate of just 28.9 percent in 2009. That was up a little from the previous year but still down sharply from the peak of 35.3 percent for this 30-year period. That was reached in 1995, under President Bill Clinton.
And who are the top 1 percent? The CBO sorts them out as those with incomes starting at $282,900 for a single person, or $565,800 for a family of four in 2009.
Meanwhile, rates for those in the middle dropped to a 30-year low of 11.1 percent in 2009, down from the 19.2 percent peak rate of 1981. That’s for the middle one-fifth of all households, those with incomes between $34,900 and $50,100 for singles, or between $69,800 and $100,200 for a family of four.
And there you have it. Those who make (individually) $282,900+ are in the top 1%. A family of four w/ income of over $565k are in the top 1%. And they paid just under 29% in taxes.
Overall tax burden is the lowest it's been since the 50s. Part is due to the massive tax cuts under Obama (and Bush), but to be fair, part is also due to the bad economy and more people falling into circumstances where they pay less tax.
Massive tax cuts under Obama? What am I missing? I don't remember those. Rates have not changed since Bush...
Does anybody know where I can find the honest answer?
Thank you.
The honest answer is yes, yes, they are. The average effective tax rate (as opposed to marginal tax rate) is just 17% with the wealthier people actually having a lower tax rate than the middle class.
I have a problem with going by effective tax rates because the criteria varies based on what a person is eligible to claim and what they actually claim. Some people don't claim all they can claim.
The rich qualify for more tax breaks and/or can hire pros to find the loopholes.
The average effective tax rate (as opposed to marginal tax rate) is just 17% with the wealthier people actually having a lower tax rate than the middle class.
The top 1% paid an effective tax rate of 24.01%. Those whose income fell between the top 50-25% paid an effective tax rate of 5.56%.
The wealthy's tax rate is nearly 5 times that of the middle class. Even those who only pay the 15% capital gains tax rate are still paying 2 to 3 times the rate of the middle class.
Where do liberals get their false information? Talking points? That they swallow hook, line, and sinker without question? When will liberals think for themselves and research the truth? The information is out there. Stop letting those with an obvious agenda manipulate you. Knowledge is power!
Does anybody know where I can find the honest answer?
Thank you.
The Bush tax cuts did lower taxes quite a bit, and 0bama has kept them in place, against his will by the way.
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