Gallup: “Half of Americans believe the amount they pay in federal income taxes is too high, while 43% consider it about right and 4% too low.”
Bloomberg news: “More than 45 percent of U.S. households won’t owe federal income taxes for 2010.”
In that Bloomberg article, it notes some Republicans are pushing for the strangely controversial notion that everyone should pay something: “As a matter of fairness, wouldn’t it make more sense if all citizens paid at least something in income taxes?” asked Orrin Hatch, the top Republican on the Senate Finance Committee, at a March 30 hearing. “I am convinced that it would help us in our fight against excessive federal spending. You get a lot of takers when you ask people if they want more of something and you tell them it’s free.”
I wonder how many people really distinguish their payroll taxes from their income taxes. Or, for that matter, their federal income taxes from their state income taxes. Or their property taxes, or their sales taxes, gas taxes, etc.
Still, setting the principle that everyone (or nearly everyone) pays something seems like a good argument for combining the payroll and income taxes.
Reply to this commentLinkReport AbuseEric has it exactly right. The OASDI and HI have been stolen by Congress and used as back door income tax increases almost since they began. All for the cause of buying votes. Most don't even know that their employers are kicking in the same amount without it showing on their paystub. Which is exactly how most politicians would like it to remain..as a tax hidden from those whose pay it ultimately reduces.
Reply to this commentLinkReport AbuseOf the 4% that pay too little how many send in more money with their 1040s each year?
Reply to this commentLinkReport AbuseEveryone should pay something. FICA, if it weren't a Ponzi scheme, would be a great investment at lower income levels since the payout is somewhat adjusted to favor those at lower income levels, even if it were a forced investment.
Reply to this commentLinkReport AbuseGoing back to old Jewish law, everyone paid 10%. I have long believed that the great accountant in the sky knew if he left 90% with the large producers, the 10% received from them going forward would total more than if he took more than 10% in the current year. I also believe that even those with lower incomes who contributed 10% felt good about themselves in that they were helping to take care of the less fortunate.
I'm probably going to sound like a squish here, but, not getting a refund and not paying federal taxes are two separate issues. A healthy majority pay some federal income taxes. The answer is to eliminate withholding. Make everyone write a quarterly check just like a business and I expect you would see quite a change in peoples attitudes about taxation.
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