Wednesday, August 24, 2011

Perry Theory : Too Many Middle Income Americans Don't Pay Enough Income Taxes

Forbes Magazine Contributor Len Burman's 
Answer GOP Candidate Perry's  Tax Position

GOP Presidential candidate Rick Perry has indicated that too many non working and middle class Americans do not pay enough taxes and, as such, should not have access to so-called "entitlement" programs.

Forbes contributing columnist Len Burman breaks down the rhetoric and puts the issue in perspective.

The link is below, but check out portions of the column as well.

"Of the 46% of households who don’t pay income tax, nearly 2/3 pay payroll taxes.

Of the 18% who pay neither income nor payroll taxes, more than half are elderly.

More than 1/3 have incomes below $20,000. (Note: Ronald Reagan made the decision in 1986 to exempt people with incomes below the poverty line from federal income tax. Twenty-five years later, that still seems like a good call.)

Only 1% of nontaxpaying households are nonelderly with incomes over $20,000. I’m dismayed about them too, governor. Maybe we should close some of the loopholes that allowed almost 1,500 millionaires to escape income tax in 2009."

He shares the following regarding a few of the GOP whipping posts...Social Security and Medicaid/Medicare:

"We’re apparently not dismayed that more than half of all Americans have been in a 30-year recession with little or no income growth.  

We’re apparently willing to write off Social Security and Medicare payroll taxes, which are the big federal taxes for low- and middle-income Americans.  

A family of four earning $30,000 may pay no federal income tax, but it pays $4,590 in payroll taxes (including the employer’s share, which economists believe is ultimately paid by the employee in the form of lower wages).  Payroll taxes are much bigger than income taxes for most families."

Sometimes it pays to examine generic political pablum!

Rick Perry: Middle Income Americans Don't Pay Enough Income Taxes - Forbes:

Come back after the jump and weigh in!

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