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US
Edited Date/Time
1/26/2012 10:50am
Tax bills in 2009 at lowest level since 1950
Source: Bureau of Economic Analysis
Amid complaints about high taxes and calls for a smaller government, Americans paid their lowest level of taxes last year since Harry Truman's presidency, a USA TODAY analysis of federal data found.
Some conservative political movements such as the "Tea Party" have criticized federal spending as being out of control. While spending is up, taxes have fallen to exceptionally low levels.
Federal, state and local taxes — including income, property, sales and other taxes — consumed 9.2% of all personal income in 2009, the lowest rate since 1950, the Bureau of Economic Analysis reports. That rate is far below the historic average of 12% for the last half-century. The overall tax burden hit bottom in December at 8.8.% of income before rising slightly in the first three months of 2010.
"The idea that taxes are high right now is pretty much nuts," says Michael Ettlinger, head of economic policy at the liberal Center for American Progress. The real problem is spending,counters Adam Brandon of FreedomWorks, which organizes Tea Party groups. "The money we borrow is going to be paid back through taxation in the future," he says.
Individual tax rates vary widely based on how much a taxpayer earns, where the person lives and other factors. On average, though, the tax rate paid by all Americans — rich and poor, combined — has fallen 26% since the recession began in 2007. That means a $3,400 annual tax savings for a household paying the average national rate and earning the average national household income of $102,000.
This tax drop has boosted consumer spending and the economy, which grew at a 3.2% annual rate in the first quarter. It also has contributed to the federal debt growing to $8.4 trillion.
Taxes paid have fallen much faster than income in this recession. Personal income fell 2% last year. Taxes paid dropped 23%. The BEA classifies Social Security taxes as insurance payments and excludes them from the tax calculation.
Why the tax bite has eased:
• Stimulus law. One-third of last year's $862 billion economic stimulus went for tax cuts. Biggest reduction: The Making Work Pay tax credit reduced income taxes $800 for married couples earning up to $150,000.
• Progressive tax rates. Presidents Clinton and Bush pushed through a series of tax changes — credits, lower rates, higher exemptions — that slashed income taxes for poor and middle-class families. A drop in income now can trigger big tax breaks and sharply lower rates, sometimes falling to zero.
• Sales tax. Consumers cut spending sharply in this downturn, thereby paying less in sales taxes.
A Gallup Poll last month found that 48% thought taxes were "too high" and 45% thought they were "about right." Those saying taxes are "too high" remain near a 50-year low.
The lower tax burden should last at least through 2010, says Roberton Williams of the Tax Policy Center, a think tank in Washington, D.C. "Virtually all the stimulus tax cuts expire at the end of the year," he says. "So the key decision is whether to extend them into 2011."
http://www.usatoday.com/money/perfi/taxes/2010-05-10-taxes_N.htm
The 50's must have been sweet!
The Shop
I guess if you're blaming Obama for the recession that began before he was elected, OK
About that 1/3 of the 862 billion stimulus going for tax cuts? That was money I paid in taxes right?
About those progressive tax rates? So, if I choose to be a slacker and make less money I'll pay less taxes? I can see that being the future of a great nation.
About those sales taxes? People spent less so they paid less in taxes? Brilliant. That helps the economy tremendously.
In Dave's defense on this one, I did notice he just posted it up and didn't comment on it.
It doesn’t take a math mathematician to realize that not only did my property tax go up, but I paid much more state and federal tax than I did last year.
It’s reality and there is no way to spin that.
The taxes people are upset about aren't this year's though--it's a few years from now.
BTW. Links to internet articles is not "research."
If you already graduated I'd guess you got the degree online...
Move along.
See your Original Talking Points from the New York Times:
Tea Party = Retards
Bush caused all the Bad Things in the World
Obama will save us.
Yes we Can.
9.9 is not the same as 10(%)
Get your Kool Aide at the door on the way out...that is all.
Pit Row
You still pay state & local income tax all of it (unless your state exempts it)
Actual tax rates
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