In the ongoing debate over who pays taxes, whether they pay enough and who doesn't pay taxes, I often hear about this rather large group who do not pay taxes,
this 45% of people who somehow get out of paying Federal income taxes. I've seen Fox News "analysts" who say that it isn't fair to those who do pay taxes that such a large segment of the society doesn't pay Federal income taxes. They say these folks don't have any skin in the game so they get the benefit of resources they don't pay for.
Frankly, I'm tired of the argument.
These folks still pay taxes. They pay state and local income taxes, property taxes (if they own a home), sales taxes, gas taxes and any fees the government requires like license plates and driver's licenses. This is a fair bit of coin out of their pocket and I'll bet you anything it's a bigger percentage of their pay than it is for those who pay Federal income taxes. It's all a matter of proportion.
The government encourages a large middle class through the tax code. There are deductions for mortgage interest, children and other dependents, child care, college expenses and medical expenses. These deductions exists to make it easier for the middle class to thrive because the middle class is the economic engine that runs the country. A strong middle class is necessary for political stability. They vote. They don't revolt. In general, they don't break the law because they have it good.
Here's a nice chart Mother Jones put together a while back showing the concentration of wealth in this country:
If you are part of that 20% that own 80% of the country's wealth you can afford to pay more taxes. The tax burden on you is far less than it is on the folks making $9.00 an hour. And because our government is pursuing an insane policy of turning our economy into a service economy that pays less than manufacturing, there are a lot more people living on $9.00 an hour or less than there used to be.
So it's time to stop whining about your tax bill and start questioning the policies of a government that has wrecked the economy so badly that 45% of the population can't earn wages high enough to qualify to pay taxes. It isn't their fault they can't find better jobs, not when unemployment is at 9%. It's time to find an economic policy that lifts 45% of the population out of the hole they've been led into.