Taxes
Maybe this is why such a big chunk of my paycheck is sucked up by the IRS:
In the meantime, Congress has shifted some of the tax burden away from businesses and onto individuals other than the very poor and the very richest.
The result of this long-term shift is that corporations keep 7 cents more of each dollar of profit after taxes while individuals keep 7 cents less of each dollar's earnings after paying income and payroll taxes.
After paying their federal income taxes, Americans had 3 fewer cents of each dollar to spend in 2000, the latest year for which detailed information is available, than they had in 1973. The overall individual income tax rate in 2000 was 18 cents on the dollar, up from 15 cents in 1973, the Syracuse report showed.
Add Social Security and Medicare taxes and the average effective tax rate was nearly 28 cents on each dollar of income in 2000, up from slightly more than 21 cents in 1973.
The opposite was true for corporations. Their effective income tax rates fell to 25.8 percent in 1999, from 32.4 percent in 1973, a decline of nearly 7 cents on the dollar.
That decline was concentrated among the largest corporations. Corporate profits are officially taxed at 35 cents on the dollar, but the 10,000 largest companies actually pay only about 20 cents of tax on each dollar of profit. Most of the tax savings, academic studies and Senate Finance Committee reports show, come from tax shelters that range from the perfectly legal to frauds so complex that I.R.S. auditors cannot understand them.
Maybe this is why such a big chunk of my paycheck is sucked up by the IRS:
In the meantime, Congress has shifted some of the tax burden away from businesses and onto individuals other than the very poor and the very richest.
The result of this long-term shift is that corporations keep 7 cents more of each dollar of profit after taxes while individuals keep 7 cents less of each dollar's earnings after paying income and payroll taxes.
After paying their federal income taxes, Americans had 3 fewer cents of each dollar to spend in 2000, the latest year for which detailed information is available, than they had in 1973. The overall individual income tax rate in 2000 was 18 cents on the dollar, up from 15 cents in 1973, the Syracuse report showed.
Add Social Security and Medicare taxes and the average effective tax rate was nearly 28 cents on each dollar of income in 2000, up from slightly more than 21 cents in 1973.
The opposite was true for corporations. Their effective income tax rates fell to 25.8 percent in 1999, from 32.4 percent in 1973, a decline of nearly 7 cents on the dollar.
That decline was concentrated among the largest corporations. Corporate profits are officially taxed at 35 cents on the dollar, but the 10,000 largest companies actually pay only about 20 cents of tax on each dollar of profit. Most of the tax savings, academic studies and Senate Finance Committee reports show, come from tax shelters that range from the perfectly legal to frauds so complex that I.R.S. auditors cannot understand them.
posted by Gary at
10:48 AM
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