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Taxes too high?

WASHINGTON – Taxes too high?

Actually, as a share of the nation's economy, Uncle Sam's take this year will be the lowest since 1950, when the Korean War was just getting under way.

And for the third straight year, American families and businesses will pay less in federal taxes than they did under former President George W. Bush, thanks to a weak economy and a growing number of tax breaks for the wealthy and poor alike.

Income tax payments this year will be nearly 13 percent lower than they were in 2008, the last full year of the Bush presidency. Corporate taxes will be lower by a third, according to projections by the nonpartisan Congressional Budget Office.

The poor economy is largely to blame, with corporate profits down and unemployment up. But so is a tax code that grows each year with new deductions, credits and exemptions. The result is that families making as much as $50,000 can avoid paying federal income taxes, if they have at least two dependent children. Low-income families can actually make a profit from the income tax, and the wealthy can significantly cut their payments.

"The current state of the tax code is simply indefensible," says Sen. Kent Conrad, D-N.D., chairman of the Senate Budget Committee. "It is hemorrhaging revenue."

In the next few years, many can expect to pay more in taxes. Some increases were enacted as part of President Barack Obama's health care overhaul. And many states have raised taxes because — unlike the federal government — they have to balance their budgets each year. State tax receipts are projected to increase in all but seven states this year, according to the National Council of State Legislatures.

Answer Question
 
sweet-a-kins

Asked by sweet-a-kins at 3:10 PM on Feb. 7, 2011 in Politics & Current Events

Level 34 (67,502 Credits)
Answers (35)
  • http://news.yahoo.com/s/ap/20110207/ap_on_re_us/us_lower_tax_bills
    sweet-a-kins

    Comment by sweet-a-kins (original poster) at 3:11 PM on Feb. 7, 2011

  • Tax breaks for the wealthy and the poor. We're middle class and we're getting screwed - both in our home business and personally.
    Anonymous

    Answer by Anonymous at 3:12 PM on Feb. 7, 2011

  • My city taxes will be going up as well.
    UpSheRises

    Answer by UpSheRises at 3:13 PM on Feb. 7, 2011

  • Actually, as a share of the nation's economy, Uncle Sam's take this year will be the lowest since 1950, when the Korean War was just getting under way.


    How much of this is because Uncle Sam is paying out more in things like EIC, HomeBuying Tax credits, etc??

    grlygrlz2

    Answer by grlygrlz2 at 3:25 PM on Feb. 7, 2011

  • Income tax payments this year will be nearly 13 percent lower than they were in 2008, the last full year of the Bush presidency. Corporate taxes will be lower by a third, according to projections by the nonpartisan Congressional Budget Office.


    How much of this is because there are LESS people in the workforce and MORE people making LESS money than they were in 2008?

    grlygrlz2

    Answer by grlygrlz2 at 3:28 PM on Feb. 7, 2011

  • Whoopie! Federal Income Tax represents only ONE tax in the myriad of taxes we pay. Half of my families income goes to pay some kind of tax. Of course they are hemorrhaging revenue, too many people are unemployed and too many people pay nothing despite being employed. If they really wanted to solve the problem they would listen to actual business owners and then work to create a more friendly business atmosphere. If people start working revenues will increase.
    yourspecialkid

    Answer by yourspecialkid at 3:29 PM on Feb. 7, 2011

  • "The current state of the tax code is simply indefensible," says Sen. Kent Conrad, D-N.D., chairman of the Senate Budget Committee. "It is hemorrhaging revenue."


    Hrmmmm, sounds like a great time to enter into a legitimate fair tax/flat tax discussion....

    grlygrlz2

    Answer by grlygrlz2 at 3:29 PM on Feb. 7, 2011

  • But in the third year of Obama's presidency, federal taxes are at historic lows. Tax receipts dropped sharply in 2009 as the economy sank into recession. They have since stabilized and are expected to grow by 3 percent this year. But federal tax revenues won't rebound to pre-recession levels until next year, according to CBO projections.


    In the current budget year, federal tax receipts will be equal to 14.8 percent of the Gross Domestic Product, or GDP, the lowest level since Harry Truman was president. In Bush's last year in office, tax receipts were 17.5 percent of GDP, just below their 40-year average.

    sweet-a-kins

    Comment by sweet-a-kins (original poster) at 3:31 PM on Feb. 7, 2011

  • All I can do is laugh. Too much nyquil, I guess
    Carpy

    Answer by Carpy at 3:31 PM on Feb. 7, 2011

  • Low-income families can actually make a profit from the income tax


    Also called an E N T I T L E M E N T...  Incentive to make less money, compliments of the Progressive Mentality...

    grlygrlz2

    Answer by grlygrlz2 at 3:31 PM on Feb. 7, 2011

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