Uncategorized

Who Pays Taxes

Today, we released an updated analysis of who pays taxes.  While the answer is that everyone pays taxes whether that be federal or state income tax, state or local sales tax, property tax, payroll tax, or gas tax, the reality is that many low- and moderate-income households pay more as a share of their income in total state and local taxes than higher income households in North Carolina.  It is for this very reason that the federal income tax system has been designed to be progressive so that taken together the system can achieve greater equity.

And even here, as this additional state-level data for North Carolina shows, those North Carolinians not paying federal income taxes are overwhelming working households who did pay payroll taxes, the elderly who paid taxes in their lifetime and students who are very likely to pay taxes when they enter the workforce.

 

3 Comments


  1. Frank Burns

    October 3, 2012 at 6:26 pm

    The first step in income tax reform is to end the practice whereby citizens who pay no federal income tax, get a refund. Nobody should receive a refund if they paid no federal income taxes. This outrage needs to end.

  2. gregflynn

    October 4, 2012 at 9:08 am

    Federal Earned Income Tax Credit (EITC):

    “the best antipoverty, the best pro-family, the best job creation measure to come out of Congress.” – Ronald Reagan

    “one of the government’s most successful anti-poverty programs.” – Mark Everson, IRS commissioner under George W. Bush

  3. Frank Burns

    October 4, 2012 at 9:37 am

    I agree with Ronald Reagan, but we’ve extended the credits too far. When one half of the populace pays no federal taxes and some who pay no federal income taxes actually get a refund, then the system has gotten out of hand.

    In my opinion, the credit needs to be modified such that no refunds are paid to those who paid no taxes, and the percentage of citizens not paying any federal income taxes should be reduced from 50% down to 25%.

    In addition, there are way too many people receiving disability benefits. That system is flawed as well. If somebody receives disability for their own actions like being fat or being an alcoholic or drug abuser, they should not receive disability.

Check Also

Failed tax-cut experiment hurts NC – don’t let it hurt the country

Senator Thom Tillis is trying to sell national ...

Top Stories from NCPW

  • News
  • Commentary

When the N.C. Senate elected Tom Fetzer to the UNC Board of Governors in March, it was widely seen a [...]

The 12 minutes spent on the phone with Duke Energy customer service shed no light on how — or if — c [...]

Crumbling ceilings. Failing air conditioning and heating systems. Broken down school buses. Mold inf [...]

This story has been updated with comments from Jim Womack, who did not respond earlier to questions. [...]

Last week, the General Assembly announced which legislators will serve on the Joint Legislative Task [...]

The latest effort in Washington to repeal and not actually replace the Affordable Care Act has a dif [...]

Conservative group “reviewing” bigoted attacks; funding from major NC corporations implicated Nearly [...]

5---number of days since Senators Bill Cassidy and Lindsey Graham unveiled a new proposal to repeal [...]

Featured | Special Projects

NC Budget 2017
The maze of the NC Budget is complex. Follow the stories to follow the money.
Read more


NC Redistricting 2017
New map, new districts, new lawmakers. Here’s what you need to know about gerrymandering in NC.
Read more