With the news of the Supreme Court confirming the Health Care Reform legislation as law, everyone has been focusing on those in the top 2 – 3% of taxpayers; or those who make more than $250,000 as a joint filer or $200,000 as a single filer. As the government continues to look to the “wealthy” for even more in money in taxes. Remember the top 5% of tax payer already pay 58.66% of all taxes; the top 10% pay 70.47%.
What has gone unsaid is what about those who pay no federal income taxes. We have a significant portion of the population who in TY2009 paid no income taxes. I am forced to use TY2009 data because that is the most current data available from the IRS at this point in time. So dated as it may be, it is what is available,
So we have a significant percentage of people who did not pay any federal income taxes, and who were not claimed as dependents by someone who does pay for them, increased from 14.8 percent in 1984 (Reagan Era) to 49.5 percent in 2009 (Obama Era). This breaks down to approximately 151.7 million Americans paid nothing in 2009. In comparison, to the 34.8 million tax filers paid no taxes in 1984. These numbers are terrifying even for TY2009.
I have read the argument that: as Congress continues to show little to no restraint in spending; would they in the future bow to the demands of this constituency for ever more entitlements since they are truly free to them. Just to maintain their prominence and stature as a legislator? I personally doubt it; Congress seems to do the minimum necessary to their entire constituency to remain in office. Few can find opponents who can afford the election battlefield to oppose them.
The challenges are great, the pressure is on, I cannot wait to see how our government works together to address all of the issues.