100% of the people have income that is not taxed. The rich have more. nt

[LiberalFighter]

[plcdude]

1. what do you

mean?

[LiberalFighter]

3. What is there to explain?

When you file your tax return each year how much income is exempt from taxes? Everyone has exemptions based on their household. Everyone either uses the standard deduction or itemize their deductions.

[napi21]

2. I assume you mean income that is exempt. Yes, you're right.

In the case of the wealthy, the phrase "it takes money to make money" applies.

[former9thward]

4. Not sure what you mean.

No matter how rich you are you have the exemptions as any one else.

[LiberalFighter]

6. Exactly.

The meme that more than 50% don't pay federal income taxes is a false issue. Since everyone has income that is not taxed because of the exemptions they can claim regardless of their income level. And everyone can either claim the standard deduction or itemize. The difference is that those in the upper income have more income that is not taxed. On average those with AGI of $200 have $64k in deductions which is more than 5 times what most tax filers claim.

[Hippo_Tron]

11. Progressive taxation sounds a lot more fair when people actually understand it

That's what I try and explain to people who complain about families making $200,000 not actually being rich. Nobody wants to raise their tax burden from 34% to 39% on all of their income. Anything $200,000 and below AFTER DEDUCTIONS wouldn't be taxed one penny more. It sounds a lot fairer when you put it like that.

[Fearless]

5. Your income is taxed based on brackets... everyone is taxed at all brackets they reach.

[LiberalFighter]

8. The point is that everyone has income that is not taxed.

On your point.. most people don't understand that or they intentionally mislead people into believing that whichever tax bracket their last dollar is in then that means all of their income is taxed at that rate.

I believe that it is necessary to make the meme that there are so many that don't pay income taxes moot. And it is necessary to show that those with more income have more of their income that is not taxed. In some instances they don't have any that is taxed.

[Fearless]

9. I was agreeing with you.

[JoePhilly]

7. I think folks are not getting your point ...

The tax code allows the rich to avoid or defer taxes far more then anyone else.

Sure, some folks don't make enough and so some of their income is not taxed, but the rich can hide income, defer the tax, or simply pass gains on when they die with no taxes of any kind.

That's the point ... right ... if so, I agree.

[handmade34]

10. exactly what I have been screaming

every since this "50% don't pay taxes" meme started... we should be the ones using this argument in our favor... 50% of the people don't make enough money in this society to be able contribute and pay taxes... wages are definitely not high enough to support people well...

I get your point