Wealthy's Tax Bill Will Hit 30-Year High in 2013

[pwaldo]

http://www.cnbc.com/id/100518058

President Obama and Democratic leaders in Congress say the wealthy must pay their fair share if the federal government is ever going to fix its finances and reduce the budget deficit to a manageable level.

A new analysis, however, shows that average tax bills for high-income families rarely have been higher since the Congressional Budget Office began tracking the data in 1979. It's middle- and low-income families who aren't paying as much as they used to.

For 2013, families with incomes in the top 20 percent of the nation will pay an average of 27.2 percent of their income in federal taxes, according to projections by the Tax Policy Center, a research organization based in Washington. The top one percent of households, those with incomes averaging $1.4 million, will pay an average of 35.5 percent.

Those tax rates, which include income, payroll, corporate and estate taxes, are among the highest since 1979.

The average family in the bottom 20 percent of households won't pay any federal taxes. Instead, many families in this group will get payments from the federal government by claiming more in credits than they owe in taxes, including payroll taxes. That will give them a negative tax rate.

"My sense is that high-income people feel abused by being targeted always for more taxes," said Roberton Williams, a fellow at the Tax Policy Center. "You can understand why they feel that way."

Last week, Senate Democrats were unable to advance their proposal to raise taxes on some wealthy families for the second time this year as part of a package to avoid automatic spending cuts. The bill failed Thursday when Republicans blocked it. A competing Republican bill that included no tax increases also failed, and the automatic spending cuts began taking effect Friday.

[Wickabee]

Yet none will pay what they actually should owe because it's all hidden away.

[shrewsbury]

wish we would hear how spending was at an all time low, then I would be happy! (well for a minute or two)

[JustAlex]

Still not high enough.

And yeah, they still won't pay their share.

The Romneys of this world know how to hide their money and make sure they pay the lowest imaginable.

But don't worry, these guys are true American patriots!

[shrewsbury]

so paying 1/3 of your income in taxes is not enough? enough for what? oh wait, not enough to cover the crazy spending they just keep on doing? ok, makes sense now

[JustAlex]

so paying 1/3 of your income in taxes is not enough? enough for what? oh wait, not enough to cover the crazy spending they just keep on doing? ok, makes sense now

We both know that they don't pay that amount.

Thanks to loopholes and hiding your money, or just downright cheating/tax evasion (which is MOST prevalent with wealthy people) they get away with murder.

I have no sympathy.

[shrewsbury]

agreed,
when need to cleanup the loopholes and fraud with taxes and we also need to cleanup the loopholes and fraud in what government is spending our taxes on.

[Wickabee]

so paying 1/3 of your income in taxes is not enough? enough for what? oh wait, not enough to cover the crazy spending they just keep on doing? ok, makes sense now

If they paid that, you would be right. You know they don't, though.

[JustAlex]

when need to cleanup the loopholes and fraud with taxes and we also need to cleanup the loopholes and fraud in what government is spending our taxes on.

And I agree with that.

But here's some more.

Cut the over-bloated defense budget and make sure that people that need help here at home get that help....make sure that when we retire (at a suitable age, NOT 70!) we can still collect our ENTITLED (it's called that because it'e OWED to US!) money!

Make sure that our grandparents don't have to suffer in disgrace because they can no longer take care of themselves and their country has told them that they no longer matter because it's more important to bail out banks that are "too big too fail" (Complete NONSENSE BTW) but everyone is left to pay the consequences.

Make sure that the middle class doesn't cease to exist and we're only left with the wealthy and poor classes.

[Wickabee]

agreed,
when need to cleanup the loopholes and fraud with taxes and we also need to cleanup the loopholes and fraud in what government is spending our taxes on.

The problem is this is as specific any conservative ever gets on the subject.