Millionaires who owe no federal income tax

[SiriuslyLong]

http://money.cnn.com/2011/05/09/pf/t...x/?iid=Popular

Interesting article in that it indicates some of the write offs that might be employed.

Note the very last sentence, "But keep in mind that boosting taxes on the rich by itself won't come close to solving the country's fiscal problems for a number of reasons. Most notably, there simply aren't enough of them."

Yeap, at most, taxing the rich will make liberals feel good LOL. But then again, they may never feel good as redistribution is already in place in a major way, and clearly they want MORE. Just read the this.

http://www.taxfoundation.org/files/wp1.pdf

[Havakasha]

It has nothing to do with "feeling good". I think its clear we have gone overboard in reducing taxes for the wealthy.
At least its clear to me.
The overwhelming majority of people (Independent, Democratic, and Republican) prefer this path to medicare cuts etc., so i think you are ignoring the facts by trying to place it at the doorstep of only "liberals".

[Havakasha]

I think i will throw this article in as well since it addresses the tax structure in this country and therefore i believe it's relevant.

U.S. Tax Burden is at Lowest Level Since 1958
http://hken.ibtimes.com/articles/142...since-1958.htm

We can have our cake and eat it too. Despite an explosion of services and federal spending, individual taxpayers are paying the lower level of taxes as % of income since 1958. Combined with corporate taxes that are at the lowest level as a % of GDP in generations, it's good times in America. I will be very interested if the 2% payroll tax holiday instituted at the end of 20101 will be allowed to vaporize Dec 31st, or if we throw this one under the barrel of "can't raise taxes in this environment!" as well.

Americans are paying the smallest share of their income for taxes since 1958, a reflection of tax cuts and a weak economy, a USA TODAY analysis finds. The total tax burden — for all federal, state and local taxes — dropped to 23.6% of income in the first quarter, according to Bureau of Economic Analysis data.
By contrast, individuals spent roughly 27% of income on taxes in the 1970s, 1980s and the 1990s — a rate that would mean $500 billion of extra taxes annually today, one-third of the estimated $1.5 trillion federal deficit this year.
The latest dip in the tax burden came from a Social Security tax cut included in a December budget deal between Democrats and Republicans. It will reduce taxes $100 billion this year.
"We have a 1950s level of taxation and a 21st-century-sized government," says Robert Bixby, executive director of the Concord Coalition, a deficit-reduction advocacy group.

[Havakasha]

Again, slightly off topic but relevant. Read the part where he talks about the need to raise revenues (taxes) to fix the deficit.


By Sarah N. Lynch
WASHINGTON | Fri May 6, 2011 10:15pm EDT
(Reuters) - Former Federal Reserve Chairman Paul Volcker warned on Friday that trillion-dollar deficits posed a threat to the stability of the U.S. economy and the dollar, and said he is frustrated by the gridlock in Washington.

Speaking before the World Affairs Council of Oregon, Volcker said that "prolonging trillion dollar deficits can't be a reality" and that the United States is on course to have its public debt exceed the size of its gross domestic product.

"One way or another, we do have to return to a balanced budget," he said in prepared remarks.

Volcker's speech came on the same day that the Congressional Budget Office said the U.S. budget deficit had totaled $871 billion for the first seven months of the year, which is significantly above the previous year's pace. On Thursday, Vice President Joe Biden led a bipartisan meeting in an effort to strike a deal with Republicans on cutting the growing federal deficit and averting a default.

They face an August 2 deadline to raise the country's $14.3 trillion debt limit.

Volcker, who stepped down early this year as the chairman of President Barack Obama's Economic Recovery Advisory Board, said he was concerned about how the U.S. consumes and borrows "to the point that China, Japan and other foreign countries hold more than 5 trillion dollars of U.S. government obligations."

"Consider that statistic in the light of prospects for continuing deficits, doubts about future inflation and the international stability of the dollar," he said, noting that the U.S. is running out of time to fix things.

In order to address the deficit, Volcker said he agrees lawmakers need to tackle discretionary spending, an area that could help the U.S. save $300 billion from present projections by 2020. But that alone, he said, will not be enough to address the trillion dollar deficits.

"I will put the point bluntly," he said. "It is simply unrealistic and irresponsible to believe budgetary balance can be achieved without higher revenues relative to GDP. We won't generate those higher revenues without tax reform.

Separately, Volcker also discussed his views on the progress made so far on the Dodd-Frank Wall Street overhaul legislation and other efforts around the world to bolster regulation of the financial markets.

Volcker was the driving force behind a pillar of the Dodd-Frank law known as the Volcker rule, which cracks down on proprietary trading by big banks. Although he no longer has a formal advisory role in the administration, he still visits the White House on occasion.

In particular, he said he was concerned about a failure to properly address certain key areas including credit-rating agencies, accounting issues and money market funds -- an issue the Securities and Exchange Commission plans to explore in a roundtable discussion next week.

"Taken all together, my personal grade on financial reform is incomplete," he said, noting that it is even more lacking abroad than in the U.S. "I do not equate incomplete with out of time, but I fear that momentum in the reform effort is waning."

[SiriuslyLong]

Good article. Thanks.

The tax base can grow by two methods - increasing tax rates, and increasing economic activity (economic activity is what gets taxed - people work, goods are bought and sold, profits are made....). Tax reform for both individuals and corporations is essential. No more multi billion dollar corporations like GE paying nothing.

[Havakasha]

You seem to be fixated on GE for some reason. LOL
I quess you forgot the names of many other corporations.
I can help you anytime you need your memory jogged.

[SiriuslyLong]

Please recall that GE was recently very much in the news. You may even recall that there was a prank, and the media broke a story that GE was indeed going to pay some income tax. So, yes, it is fresh on my mind, and yes, I'm sure there are many other corporations loopholing their way out of taxes.

[Havakasha]

i know it was in the news but i think you are using it as an example because Immelt has teamed up with Obama.

Yes, i posted an article that 55% of all coporations have paid NO taxes in one of the past 7 years. Take a look again.

[SiriuslyLong]

i know it was in the news but i think you are using it as an example because Immelt has teamed up with Obama.

Yes, i posted an article that 55% of all coporations have paid NO taxes in one of the past 7 years. Take a look again.

Oh, so that's why they pay no taxes? Political favors?? Ain't America great.

[Havakasha]

There now, you just came out and told the truth AS YOU SEE IT, instead of hiding behind some pretend version.

GE the only corporation that exists in America as far as S&L knows.

That figure is 55% by the way.