As a retired CPA, I think you should have the facts before you listen to all the political hyperbole that purports to tell you things like this – “half the people in this country pay no taxes” and “we have the highest corporate tax rate in the world”. When lies are told often enough and loud enough, those of you who don’t have a way to get the real information wind up believing it. The reality of taxes is taking a huge hit with the demagogues of the political parties out there.
So, I am doing my part in educating you. I am listing the main points here, but please take the time to read the whole article, which I am linking to. It is by a very respected reporter, a Pulitzer Prizer Winner, a Professor of Taxes, etc. Here is his bio:
David Cay Johnston is a columnist for tax.com and teaches the tax, property and regulatory law of the ancient world at Syracuse University College of Law and Whitman School of Management. He has also been called the “de facto chief tax enforcement officer of the United States” because his reporting in The New York Times shut down many tax dodges and schemes, just two of them valued by Congress at $260 billion. Johnston received a 2001 Pulitzer Prize for exposing tax loopholes and inequities. He wrote two bestsellers on taxes, Perfectly Legal and Free Lunch. Later this year, Johnston will be out with a new book, The Fine Print, revealing how big business, with help from politicians, abuses plain English to rob you blind.
1. Poor Americans do pay taxes.
2. The wealthiest Americans don’t carry the burden.
3. In fact, the wealthy are paying less taxes.
4. Many of the very richest pay no current income taxes at all.
5. And (surprise!) since Reagan, only the wealthy have gained significant income.
6. When it comes to corporations, the story is much the same—less taxes.
7. Some corporate tax breaks destroy jobs.
8. Republicans like taxes too.
9. Other countries do it better.