wealthy benefit most from tax subsidies

iVillage Member
Registered: 09-15-2008
wealthy benefit most from tax subsidies
137
Wed, 09-22-2010 - 9:25pm


(Reuters) - Billions of dollars in U.S. tax breaks to encourage home ownership, retirement savings, business start-ups and education mostly benefit top income earners and do little to help low- and middle-income people build wealth, a report released on Wednesday said.

full article:
http://www.reuters.com/article/idUSTRE68L3WP20100922

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iVillage Member
Registered: 01-21-2006
Fri, 09-24-2010 - 9:35am

According to the IRS tax statistics from 2007, which are the last ones to be published (that I can find). The top 1% of tax returns paid 40.4% of all federal individual income taxes and earned 22.8% of adjusted gross income (AGI).



The top 5% of tax returns paid 60.6% of all federal income taxes and earned 37.4% of adjusted gross income.



The bottom 50% of tax returns paid 2.89% of all federal income taxes and earned 12.26% of AGI.



shell



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iVillage Member
Registered: 10-30-2003
Fri, 09-24-2010 - 10:02am

I understand you position.

Anne

I have no need for anger
With intimate strangers
And I got nothing to hide



- Amy Ray

I have no need for anger
With intimate strangers
And I got nothing to hide


- Amy Ray

iVillage Member
Registered: 08-16-2005
Fri, 09-24-2010 - 10:06am
Thanks!








iVillage Member
Registered: 01-22-2000
Fri, 09-24-2010 - 10:27am

The top 1% of income earners earn about 22 to 23% of income and pay about 40% of income taxes. That is the only valid comparison that can be made. You cannot compare what percentage of income tax they pay and what percentage of wealth they hold. It is an income tax that is being discussed here, not a wealth tax.



Sonny

iVillage Member
Registered: 01-22-2000
Fri, 09-24-2010 - 10:32am

The tax being discussed is an income tax, correct?



Interesting twist and spin that I had not seen before. If you want to talk about the progressive tax code, then fine. I would doubt that those here are not already aware of the way our tax system works. To try to explain it away as somehow being tied to, or making up for, wealth distribution is a shot that completely misses the mark.



Sonny

iVillage Member
Registered: 10-30-2003
Fri, 09-24-2010 - 10:35am

I understand that our point is convenient to ignore, when one wants to complain about how unfair everything is.

Anne

I have no need for anger
With intimate strangers
And I got nothing to hide



- Amy Ray

I have no need for anger
With intimate strangers
And I got nothing to hide


- Amy Ray

iVillage Member
Registered: 01-22-2000
Fri, 09-24-2010 - 10:43am

Seems like you are doing a fair share of complaining about fairness to me.



If you

iVillage Member
Registered: 10-30-2003
Fri, 09-24-2010 - 11:06am

I've explained my point, so has Opal. If you want to continue to ignore it, there isn't much else to say.

Anne

I have no need for anger
With intimate strangers
And I got nothing to hide



- Amy Ray

I have no need for anger
With intimate strangers
And I got nothing to hide


- Amy Ray

iVillage Member
Registered: 09-01-2010
Fri, 09-24-2010 - 11:53am
Well...I'm not at all concerned that they paid that 40.4% of income taxes since they own over 40% of the country's financial wealth. And...their financial wealth earns them income. The wealthy are doing okay, and they'll do okay in the future.
~Opal~
~Opal~    
iVillage Member
Registered: 01-22-2000
Fri, 09-24-2010 - 12:34pm

Just for informational value to any who are being mislead or confused by the attempt to change the meaning or purpose of an income tax, or for any who think that claims that the wealthiest 1% hold 40% of the wealth and that this must be some run away number over the last few decades I offer the following:



For the yr 2007, the top 1% held 34.6% of all wealth.



85 yrs prior, in 1922, the top 1% held 36.7% of all wealth.



Over those 85 yrs the high percentage of all wealth held by the top 1% was 44.2% in 1929. The low over those same years was 19.9% in 1976.



In the last 30 yrs, the range has been from a low of 24.8% to a high of 38.5% in 1998.



The most recent number that I could find(2007) was not 40%. It was 34.6%. The recent numbers are not out of line with long

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