Saying 45% pay no federal income tax is quite different than say in 45%pay no tax as the end of of lost tries to point out....but still misses the point.David Redszus wrote: ↑Sat Oct 21, 2017 5:32 pm
An estimated 45.3 percent of American households — roughly 77.5 million — will pay no
federal individual income tax, according to data for the 2015 tax year from the Tax Policy
When it comes to all federal taxes — individual income, payroll, excise, corporate
income and estate taxes — the distributions of who pays what is more spread out.
This is partially because nearly everyone pays excise taxes, which include taxes on
gasoline, alcohol and cigarettes.
The lowest income people earn there income through wages and spend 100% of what they have. Because they earn wages they pay payroll tax of about 16%, 12% social security tax, in most states there are property and sales taxes along with income taxes....so by %income the lowerest earners pay the highest % in taxes. That is what a progressive income tax rate is designed to address, but it only partially works and any non-wage income is taxed at far lower rates so the wealthiest pay 0-15%, the poorest closer to 50%.
If you want to be honest in your accounting........