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http://www.washingtonpost.com/blogs/ezr ... s/?hpid=z3For what it’s worth, this division of “makers” and “takers” isn’t true. Among the Americans who paid no federal income taxes in 2011, 61 percent paid payroll taxes — which means they have jobs and, when you account for both sides of the payroll tax, they paid 15.3 percent of their income in taxes, which is higher than the 13.9 percent that Romney paid. Another 22 percent were elderly.
So 83 percent of those not paying federal income taxes are either working and paying payroll taxes or they’re elderly and Romney is promising to protect their benefits because they’ve earned them. The remainder, by and large, aren’t paying federal income or payroll taxes because they’re unemployed. But that’s a small fraction of the country.
Behind this argument, however, is a very clever policy two-step that’s less about who pays taxes now and more about who is going to pay to reduce the deficit in the coming years. Here’s how it works.
Part of the reason so many Americans don’t pay federal income taxes is that Republicans have passed a series of very large tax cuts that wiped out the income-tax liability for many Americans. That’s why, when you look at graphs of the percent of Americans who don’t pay income taxes, you see huge jumps after Ronald Reagan’s 1986 tax reform and George W. Bush’s 2001 and 2003 tax cuts. So whenever you hear that half of Americans don’t pay federal income taxes, remember: Ronald Reagan and George W. Bush helped build that. (You also see a jump after the financial crisis begins in 2008, but we can expect that to be mostly temporary.)
Some of those tax cuts for the poor were there to make the tax cuts for the rich more politically palatable.
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That's also why there was a "budget surplus" during final couple of years of the Clinton administration even as our national debt continued to rise, there are expenditures by the federal government that don't show up as line items in the federal budget. And while I would agree with you that incorporating the annual appropriations for the cost of the wars and other expenditures which were previously "off budget" accounts for part of the reason the deficit has averaged over $1.5 Trillion per year under this administration, that additional transparency is a small part of the increase. At the height of the additional appropriations to fund the wars the additional cost to conduct combat operations in two theaters was roughly $150 Billion, or $0.15 Trillion, annually and is significantly lower now due to reduced combat operations. It might fairly be said that without active combat operations the 2012 deficit would be $1.25 Trillion instead of $1.35 Trillion, but to pretend, or imply, that without the wars our total deficit spending would have been significantly less than it is, or was, simply doesn't hold water.Wily Fox aka Angela wrote: part of the reason the debt side of the equation got higher is that Obama is accounting for the wars and Medicare prescription act that Bush was not. I think it was all part of the transparency plot to get real on the costs of running the wars, etc.
The real problem is the do nothing members of Congress and Senate that has made it clear that they would not help Obama succeed at anything in an attempt to kill a second term. I wonder what their excuse will be when he wins and they still are getting anything done.
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