On February 15, Scott Garrett took to the airwaves at WOR-AM to parrot Republican dogma about how half the people in the United States pay no Federal income taxes. Republicans trod out the same story every year as we approach April 15th to show how the rich are really paying more than their fair share and before anyone seeks to increase their taxes something really ought to be done with all those Americans not paying any Federal income taxes at all.
While 46% of Americans will not be paying Federal taxes by April 15th, that’s only half the story. To hear Scott Garrett, one would believe these 46% are living off the backs of the rest of us; that they are a collective bunch of “freeloaders.” It’s a great applause line at Republican fundraisers and rallies, but it doesn’t begin to tell the whole story.
Most of the 46% do pay Federal taxes. They just don’t pay any additional taxes when they file their income tax returns. 28 percent of these “freeloaders” have payroll taxes withheld from their paychecks. Every one of these 46% who drive pay Federal taxes every time they put gas in their car. The tickets anyone purchases for transportation (airplanes, buses, etc.) include Federal taxes in one form or another. The list of Federal taxes paid by all Americans is too voluminous to enumerate here. Suffice it to say, anyone living in the United States pays Federal taxes.
Most ”freeloaders” pay no Federal income tax because their income is too low; they are “zeroed out.” Nearly 80 percent of the “freeloaders” earn less than $30,000 a year. Who are these people? Certainly some of them are in good health and are of working age. They are often under-employed or out of work like 8.3 percent of all Americans. However, 70 percent of the “freeloaders” fall into one of two categories. First, the elderly who are retired and without income beyond Social Security and thus don’t earn enough to pay taxes. Second, the disabled – either physically or mentally, who collect SSI and thus have no Federal tax obligation.
The working-poor “freeloaders” have their Federal tax obligation zeroed out because they are taking the same tax deductions available to most Americans; a tax credit for child care, a tax deduction for each dependant up to 18 years old, a tax credit for going to college, etc. Keep in mind, that these “freeloaders” don’t get a majority of the tax benefits available to the rest of the us because they don’t earn enough income. For example, “freeloaders” are generally unable to take advantage of a reduced tax rate for long-term capital gains as they have no capital gains – long-term or otherwise. Many “freeloaders” pay Social Security taxes on all their income while no individual pays Social Security taxes on anything they earn in excess of $110,000 per year.
Telling only part of the story is a pet peeve I’m sure we all share. A friend of mine often repeats the following story. If someone ran into a room covered in blood and told you he just killed someone you would have to decide how you were going to deal with a potential homicidal maniac. However, if that same person ran into a room covered in blood said “I just killed a man who was trying to kill my child” that person might now be considered a hero in your eyes. Getting 100 percent of the story is everything.
Scott Garrett needs to stop pandering to low-information voters. We except more from our elected officials. We need to know the facts to make educated decisions about how best to move forward. Fiction might get you votes in the short-term, Mr. Garrett, but fiction hurts us all.
Filed under: Taxes
