Fleeced: The upper 1% earned 19.6% of total income before tax, and paid 41% of the individual federal income tax. “No other major country is so dependent on so few taxpayers”

The BlogProf:  “Darned straight! The rich in this country pay far more than their fair share. And not only does bottom 47% of taxpayers pay no federal income tax, but the bottom 40% GET MONEY BACK! That goes right along in consistency with a prior post of mine: 60 Minutes/Vanity Fair Poll: 50% of Americans that don’t pay taxes thinks “rich” people ought to pay more, even though top 1% pay more than bottom 95%

How President Obama’s Tax Plan Raises Tax Payments for a Couple Earning $250,000 or Less

Tax Foundation:  “The Tax Foundation launched a new calculator last week that helps users see how their taxes might rise in 2011. In a FoxNews piece about it, we explained that some families making $250,000 or less could see a tax increase under Obama’s budget proposal, which would be a violation of his famous campaign promise not to raise taxes on families with incomes of $250,000 or less. Here’s how that would happen.”

Estimate Your 2011 Federal Income Tax with the Tax Calculator

Use MyTaxBurden.com‘s simple fill-in-the-blanks income tax calculator to estimate your 2011 federal income tax under any or all of the following scenarios:

  1. Congress allows all of the Bush tax cuts to expire;
  2. Congress acts to extend into 2011 all of the Bush tax cuts; and
  3. Congress passes the tax laws suggested in President Obama’s budget, letting some tax cuts expire, extending some, and enacting some new tax laws.

Rich Pay 40% of Nation’s Tax Burden, Hillary Clinton Says Its Not Enough

The Tax Foundation:  “The chart below shows estimates by the Tax Policy Center for 2010 of the distribution of income compared to the distribution of all federal taxes (personal income, payroll, and corporate) by percentile.  It shows that households earning over about $212,000 earn about 30 percent of the nation’s income but pay more than 40 percent of all federal taxes.  By contrast, those earning less than $105,000 collectively earn about 46 percent of the nation’s income but pay 32 percent of the taxes. The bottom quintile pays nothing.

Taxpayers Face Uncertainty in 2011 As Bush and Obama Tax Cuts Expire

The Tax Foundation:  “Polls show that many Americans are anxious about their taxes and believe their payments are rising. At first glance this seems like a public misperception because tax policy at the end of the Bush administration and the beginning of the Obama administration has been dominated by a blizzard of tax cuts, most narrowly targeted at a few taxpayers but some broadly benefiting low- and middle-income people. But paradoxically, the people are right to be worried about high taxes. With federal deficits growing and the U.S. debt mounting to alarming levels, Congress will soon need to cut spending or raise taxes to shore up the long-term fiscal outlook.”

Here we calculate what some typical tax returns will look like for tax year 2011 under three scenarios:

  • the tax policies that prevailed before President Bush was elected;
  • all Bush-era tax policies extended to 2011 (with no Obama changes); and
  • combined Bush and Obama policies, as outlined in the President’s FY 2011 Budget.”

What Higher Taxes Will Really Mean

New York Times:  “The federal income tax increases over the next three years have led to lots of grumbling. But for all the back and forth about the percentages, something has been overlooked: what do these increases mean in real numbers? . . . high earners will be paying 17 to 19 percent more in taxes by 2013 than this year.  But these are just federal taxes.  That does not include state taxes or Social Security contributions, or property and sales taxes.”

5 Myths About Your Taxes

The Washington Post has an article entitled “5 Myths About Your Taxes,” which according to the author are:

  1. The poorest and the richest Americans pay no taxes.
  2. Americans are overtaxed
  3. Higher taxes could eliminate the federal deficit.
  4. Most people’s tax returns are way too complicated.
  5. You should aim for a big tax refund.

Trying to Get Foxx’s Estate Out of the Redd

The following story is proof that we cannot escape paying taxes by dying.  AolNews:  “It could easily have been the plot for a ‘Sanford and Son’ episode: a bizarre money-making scheme cooked up by a well-meaning but possibly misguided man that seems destined to go comically awry.   But in this real-life case, it’s a county official in Las Vegas who is trying to put the life story of late ‘Sanford’ star Redd Foxx on the block to resolve mammoth debt the actor left behind.  Foxx owed more the $3.6 million in taxes to the IRS when he died 19 years ago.”

Backdoor Taxes to Hit Middle Class

Reuters:  “The Obama administration’s plan to cut more than $1 trillion from the deficit over the next decade relies heavily on so-called backdoor tax increases that will result in a bigger tax bill for middle-class families.  In the 2010 budget tabled by President Barack Obama on Monday, the White House wants to let billions of dollars in tax breaks expire by the end of the year — effectively a tax hike by stealth. . . . Millions of middle-class households already may be facing higher taxes in 2010 because Congress has failed to extend tax breaks that expired on January 1.”

Update on why the above link to a Reuters story no longer works: Presidential censorship – we should all be very worried when government can suppress the media.  “Obama administration aides appealed to the Reuters White House reporting team to kill a story by another reporter of the news service that suggested the president’s new budget blueprint included “backdoor” tax hikes.  A White House official told TPMDC the Reuters story was “falsely stating that the President’s budget raises taxes for middle class families, when in fact the opposite is true.”  The official said when the administration saw the story, published yesterday afternoon, they contacted one of the Reuters White House correspondents.”  See also “Reality Check on Taxes.”

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