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Taxes lowest since 1950?


By Teresa Mears Feb 7, 2011 4:02PM

This article is by Stephen Ohlemacher of The Associated Press.

Taxes too high?












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.


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% 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% 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% of GDP, just below their 40-year average.
















Paying more or less?

  • A single person making $50,000 while paying interest on a student loan would have a 2010 tax bill of $5,325 -- a $63 decrease from 2008. The difference is due to an inflation-based increase in the standard deduction and personal exemption.



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Feb 7, 2011 6:22PM

** Low-income families can actually make a profit from the income tax, **  Let's all scream *SOCIALISM*.


How do you get an Income Tax REFUND when you didn't pay any income taxes to begin with?  You still used gov'ment services......roads, schools, parks, public should help pay the bill.

When you are 20 years old with four children, living on welfare, food stamps, gov'ment housing, medicare, and your kids get a free breakfast and lunch at don't deserve an INCOME TAX REFUND......because you are *in the red* before you even get started.  The total dollar amount of all those *free gov'ment hand-ups* should get deducted from any REFUND that anyone is getting from their paid income taxes.


Suprise....America is bankrupt.....and here is one reason.....people getting refunds for money they never paid out in the first place.  America needs a FLAT TAX....with NO deductions for any exception.

*You were paid X amount  for working last year.....we have kept 4% of that total in the form of paycheck deductions.  Thank you for being an American.  Have a nice day.*

Feb 7, 2011 7:39PM
Are we speaking of the tax rates or of tax revenue?  I suspect the main reason for less tax $ is that the economy is depressed and many people are either un-employed or earning less; therefore, spending less and paying less in taxes
Feb 7, 2011 6:01PM

Specialty taxes targeted at specific products or services is complete BS for starters. Why should person #1 who's work uses more of one type of item get stuck paying higher sales taxes when #2 person's work uses large amounts of some other item which is taxed at a lower rate?  That's crap. Gov'ment services like roads and public utilities do not cost more for person #1 to use; versus person #2, so why whould they pay different sales taxes?


The store where I work has a big problem with people stealing alcohol, given the current prices, taxes, and laws which govern what times of day and what days that we are able to sale alcohol.

Increase taxes on booze and even more people will be tempted to try and steal it.  I believe purse snatching, charity donation bucket theft and vending machine vandalism......all in effort to get some free money to buy booze......would all see an increase in activity.

Feb 8, 2011 11:52AM
To make a comparison to 1950 the article needs to look at TOTAL tax burden including state and local taxes.  Gut says that we are paying more total tax, but I have not seen a credible analysis of the total tax burden.
Feb 7, 2011 6:59PM

Gee, if the poor are making a profit and the wealthy are substantially reducing their payments, then that just leaves the middle class holding the bag..............


The Tax Code is a joke, but I can't even imagine how long it will take Congress to agree on those changes:


Democrats: Tax the rich, sell debt to China and give to the poor

Republicans: Don't tax at all, sell debt to China and give to the wealthy


The middle class gets the Shaft while the rest of America gets the GOLD.

Feb 7, 2011 5:32PM

Health insurance payments should be considered taxes under Obama since they are now mandatory (unless SCOTUS does the right thing and declares the law unconstitutional).

Feb 8, 2011 11:33AM
Rusty why should i have to pay more than you when you seem so much smarter i would be more then happy if we both paid $ 100,000.00 a year in taxes and called it even. How about that flat tax now will see whos whinning
Feb 17, 2011 10:59PM

With the Feds articulating we are broke, it seems appropriate that everyone wants to get theirs ASA  friggin P!

Like the market crash years ago. It's my money!!!!!  and I want it now!!!!!!!!!!!

Feb 7, 2011 9:07PM
What is this, some sort of liberal propaganda piece to make us feel better about the Obama tax hikes coming?


- The 10% bracket rises to an expanded 15%
- The 25% bracket rises to 28%
- The 28% bracket rises to 31%
- The 33% bracket rises to 36%
- The 35% bracket rises to 39.6%




Feb 9, 2011 7:43AM
This is GREAT NEWS! Now the tea partiers can shut up! If they don't, maybe democrats can select one of the tea partiers favorite loopholes, such as the oil depletion allowance, or the Price-Anderson act, ( which limits nuclear power liability to $10 billion, no matter the damages in a nuclear accident), or unlimited deductions for losses in horse racing, and introduce a bill to end it. Then tea partiers and the GOP would have to show their bias toward the rich!
Feb 7, 2011 9:49PM
The law states that only a profit or a gain can be taxed in the "income tax". A salary or an hourly wage cant be considered a profit or a gain because you are trading your time for that wage. It is a straight across trade.
Feb 7, 2011 9:56PM
Tell me something I didn't know.   In 2005 Bush raised my taxes 5% and gave the megarich a tax break that they used as a no liability adventure into outsourcing to foreign countries, costing so many American jobs.  For 4 years I paid this higher tax because of Dubya and his misguided attempt at reaganomics that has not worked ever in the last 30 years.  My 2009 tax under Mr. Obama had a tax break that saved me $1,400 and I am very very grateful for that, made up in a small way for dubya's stupidity.  The conservative republicans and many of them felt that same tax increase don't mind as long as it's a republican doing the screwing of them, while the rich just keep getting richer and they care less if there are jobs.   Eventually, their products won't be bought by the middle class just because there is no money for frills in a two worker family now.  This caused the collapse of everything under ole dubya who didn't care, his friends were the megarich anyway.  Now the country is making some very small headway on the long road back, but Obama isn't the savior we were looking for either, he's afraid of the conservative house and the elite megarich.   Simple solution, put my taxes back to 2004 levels and the megarich back to their 2004 levels and then go forward again from there.   That's fair enough for all concerned.   Hasn't been another tax increase or another tax break since that date, so it's a simple solution. 
Feb 7, 2011 8:34PM
That's bull$hit I just had my taxes done and I paid 47% yes that's right 47% and yes i live in the U.S.A who is paying less i would like to know sure isn't small business
Feb 8, 2011 4:41AM
The only bigger whiners about taxes than big business are small business owners.
Feb 8, 2011 11:28AM
Rusty maybe if people like you worked harder we wouldnt have to out source
Feb 7, 2011 7:03PM
low income families shouldn't pay tax... after takes a whole lot of pay check to pay check families to make the rich shouldn't be so hard on someone who's willing to do that for you
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