A perfect example of a government that no longer works for the people but rather is working for itself. Note that the rich are already paying most of the taxes while the lower income folks are paying the smaller part. Whats with the Democrat and the RINO Propolies constant harping on taxing the rich? Could it be just another method of gaining votes from the working class of people? Most likely it is since they start campaigning for reelection the moment they start a new term. We need to get rid of the tax code completely and replace it, and the people who write this complicated crap, with common people who understand life in the real world. $165 Billion a Year to Comply With Tax Code The Tax Foundation has released a report providing an eye-opening look at many facets of the federal tax system — which the foundation calls abominable. The report is titled Putting a Face on Americas Tax Returns: A Chart Book. The Foundation states: The income tax system in the United States is a sprawling mass of provisions spread across dozens of volumes and has been called everything from a disaster to an abomination. It takes Americans as many as seven billion work hours every year just to complete the paperwork required. The IRS own National Taxpayer Advocate estimates that it costs individual and corporate taxpayers more than $165 billion annually to comply with the income tax code. In order to figure out what we need to fix, we need to understand how the system works now. Weve compiled this chart book to not only put a face on American taxpayers, but to provide some must-know background information on the key issues of the tax reform debate. In 1913, the federal income tax started as four pages of forms and instructions, according to the report. Today, the income tax code spans more than 70,000 pages. Back in 1940, the year before the United States entered World War II, excise taxes — including gas and cigarette taxes — were the largest source of federal revenue, followed by Social Security payroll taxes, then corporate income taxes. Today, individual income taxes are the top source of revenue. It is estimated that in 2014, individual income taxes on wages, capital gains, dividends, and other income sources will provide $1.38 trillion. Social insurance taxes, which fund Social Security and Medicare, will bring in $1.02 trillion. Corporate income taxes will provide $380 billion, and excise taxes just $93 billion. Another $169 billion will come from estate and gift taxes and other sources. Some highlights of the Tax Foundations report: The median taxpayer earns about $33,000 a year, so half of the 145 million tax filers earn less than that, and 47 percent of filers earn less than $30,000. Three percent make from $200,000 to $499,999, and 1 percent earn $500,000 or more. Taxpayers who make less than $100,000 annually pay 18 percent of all income taxes, while those who make more pay over 80 percent. Those earning 1 million or more account for 11 percent of all income, but 23 percent of all income taxes paid. In 1985, the top 10 percent of taxpayers accounted for 54.7 percent of total income taxes. Today they account for 70.6 percent. The bottom 50 percent of taxpayers pay 2.4 percent of all income taxes. The average tax rate for the top 1 percent of earners is 23 percent, and the average for the bottom 99 percent is 9 percent. The average for all filers is 12 percent. The bottom 20 percent of earners receive an average of $24,125 in federal spending while paying $2,967 a year. At the other end of the scale, the top 20 percent — earning about $119,600 or above — pay $86,975 in federal taxes and receive $21,402 in federal spending. Another way to look at it: The bottom 20 percent receive $8.13 for each dollar they spend in federal taxes, and the top 20 percent receive $0.25. Tax reform is in the air in Washington these days, the foundation states. There is growing bipartisan agreement that the tax code is too complicated, burdensome, and uncompetitive, and is undermining our economic potential.
Posted on: Sun, 03 Nov 2013 14:32:09 +0000
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