Tuesday, September 18, 2012

47% Not Paying Federal Income Taxes

Of course by now most people have heard Romney's remarks that 47% of Americans do not pay federal income tax.  Actually Romney just said "dependent on government."  But let's clarify in case your students ask.  Romney was parsing words.  He was correctly pointing to 47% of Americans who do not pay federal income taxes are on income beyond what may be withheld by your employer who sends it to the IRS as well as capital gains.  This is not to be confused with payroll taxes which includes unemployment insurance, Medicare and Social Security and your tax on salary (more).

The Economist did a little research and agrees with Romney - kind of.  First off this article points out that the number of people not paying taxes has gone up more under Republican presidents and most of these people live in Republican states.  Of course Obama ran into similar closed door comments in 2008 when he spoke of bitter gun carrying Pennsylvanians. It might bear mentioning to students that what is said to the faithful at a closed fundraiser and what is said in public is sometimes different.  Of course here in VA we still remember that no place is off limits as our former senator and current senatorial candidate George Allen learned with his Macaca moment

1 comment:

Jason Murphy said...

Having that fact, what public sector comprises those 47% not paying taxes?

payroll services Montreal