Saturday, August 13, 2011

Those who don't pay taxes....

Okay, so about 47 percent of American won't be paying any federal tax. To some, it 51 percent. To me, there are those who want to beat up on the working poor who don't pay a federal income tax, while completely ignoring the wealthy who...don't pay any federal income tax. Which is more unfair?



CNN: Nearly half of all U.S. households, or 69 million, are estimated to have owed no federal income taxes for 2010. The vast majority of them, however, are low income. But 18,000 were households taking in more than $500,000 -- and of those, 4,000 made more than $1 million.
In the below advertisement, the claim is an interesting one:


How can it be that those with big income streams owed zip to Uncle Sam? What's common to all is that they likely qualify for the many tax breaks in the code that disproportionately benefit high-income households. A lot of these are people who probably made it very big on Wall Street years ago and who turned around and put it all in tax-exempt bonds.

A hypothetical example: A retired person with $10 million invested in municipal bonds paying 5% interest, or $500,000 a year. Because there is no limit on how much tax-exempt interest you can earn without having to pay taxes, she pays nothing to the federal government.

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