WaPo Declares 'Historic Low' in Tax Burden, But Leaves Out More Than Half the Burden

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On the day after nationwide Tea Party protests, the Washington Post carried this headline in a text box at the top of Page One: "Tax Burden Near Historic Low: The average family sent about 9 percent of its income to the IRS, with the middle-class faring especially well, according to federal data. A12." (The D.C. tea party was noted at the bottom of the page, and readers were sent to B-1, the front of Metro.) But how do the Post’s "tax burden" claims stand up?

Inside the paper, there’s a chart, and the source is the "nonpartisan" Congressional Budget Office, now controlled by the Democratic majority. It measured only the "Effective individual income tax rate." The Post is measuring less than half the federal "tax burden"! Here’s what the CBO director’s blog on the study reported:

The overall effective federal tax rate (the ratio of federal taxes to household income) was 20.7 percent in 2006. Individual income taxes, the largest component, were 9.1 percent of household income. Payroll taxes were the next largest source, with an effective tax rate of 7.5 percent. Corporate income taxes and excise taxes were smaller, with effective tax rates of 3.4 percent and 0.7 percent.

This study only goes back to 1979. The Post has a funny way of defining "historic" when it comes to the tax burden. There wasn’t a federal income tax until 1916. Lori Montgomery’s story (headlined "Americans’ Tax Burden Near Historic Low") began:

The nonpartisan Congressional Budget Office estimates that the average family forked over barely 9 percent of its earnings to the IRS in 2006, the most recent year for which information is available. The effective tax rate hit its all-time low in 2003 and has since crept up only slightly.

Even the graph title is inaccurate: "Uncle Sam’s Share: The federal tax burden for most income groups, particularly middle-income households, is near its lowest level in decades, according to the most recent available federal data." The chart doesn’t really measure the whole "federal tax burden," but readers would certainly think it does.

Only in the 16th paragraph, after touting how about a third of all filers paid no income tax in 2006, did Montgomery briefly acknowledge the other half of the federal tax burden:

Of course, even filers who have no income tax liability still pay federal taxes, due in large part to the payroll tax, which funds federal insurance programs like Social Security. According to the CBO, taxpayers shelled out an average of 7.5 percent of their earnings in payroll taxes in 2006.

But if the recession lingers and Congress and the White House consider another economic stimulus package, that tax could temporarily disappear, as well. Economists say one of the first items that should be considered is a payroll-tax holiday.

Montgomery also tried to insist the "tea parties" were out of line with public opinion. Let's pick up at the fourth paragraph:

With federal income taxes so low for so many families, a majority of those surveyed by Gallup last week said the amount of federal income taxes they pay is either "too low" or "about right," compared with 46 percent who said their tax bills are "too high" -- one of the most positive assessments of the federal tax burden since Gallup began asking the question in 1956.

Gallup analysts said the poll results may also reflect confidence in Obama's pledge not to raise taxes on families making less than $250,000 a year, a vow he repeated yesterday in a tax-day speech at the Old Executive Office Building.

The Post did not note the irony that suddenly, with the Democrats in power, Americans are more satisfied with their tax burden: the same question drew different numbers in George W. Bush’s last two years. While 46 percent said their tax bills were too high and 48 percent said they were about right in 2009, in 2008 the gap was 52 percent too high/42 percent about right, and in 2007 it was 53-41. Perhaps the sense of an economic crisis has also affected public opinion about making sacrifices, not just confidence in Barack Obama’s pledges.

[Montgomery image from the NewsHour]

—Tim Graham is Director of Media Analysis at the Media Research Center.


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46% is not insignificant

Just because you can muster just over 50% in support does not give you the right to disregard and oppress the remaining 40+%.  This is not some insignificant minority.  I don't know how they can advance this idea while maintaining themselves as the champions of minorities.  Could it be they are hypocrites? I know. Shocking right?

By that reasoning, civil rights would never have happened.  Oh yeah.  Democrats were against that too.  Starting to see a pattern?  They take whatever slim majority they can and try to leverage it into some kind of universal mandate to allow them to run roughshod over any and all opposition.

Liberal: remove all that's Right, and this is what's Left.

Tax

Non tax payers are being refunded not by the government but by taxpayers.

All of the 'goodies' government offers, proposes to non taxpayers are as well funded by taxpayers.

The almost infinite earmarks appropriated by congress are funded by taxpayers...

Each case represents additional spending. Taxes can be overcome, spending is a death threat.

JDW

DAILY WAVE

The government works for me, not the other way around

This "news" articles is

This "news" articles is nothing but pure propaganda.  The federal tax code is overwhelmingly progressive.  The top 25% of wage earners in this country pay 86% of the taxes.  The top 50% of wage earners pay 97% of all federal income taxes.  Only 3 1/2% of the federal tax burden in paid by the bottom 50% of wage earners.  A growing number of people not only do not pay any federal income tax, but get money back.  

Under the bambi, the first stupid liberal, the number of people that pay no taxes and get money back will grow dramatically.  

The true danger is that those that get paid at tax time will soon overwhelm the rest of us that do pay when it comes to electing our representatives.  

The "famous" misnomer is that employees pay 7.5% of the payroll tax.  We pay the entire 15.3% of the payroll tax.  Yes, technically our employers pay half, but if we weren't working it would not need to be paid.  Believe it when I say it is part of the calculation of how many people get hired in a business because it the entire 15.3% that must be paid.   

Notice the dates!

The nonpartisan Congressional Budget Office estimates that the average
family forked over barely 9 percent of its earnings to the IRS in 2006,
the most recent year for which information is available. The effective
tax rate hit its all-time low in 2003 and has since crept up only
slightly.

These statistics (all be it partial statistics) are the result of a Republican congress and a Republican President. With the spending that has occured since these dates, we can expect that portion of our tax burden to rougly double over the next couple of years.

I wonder how the economy is going to be doing in 2012 when the average family is paying 15-18% of it's income to the Federal Government, not including the payroll tax and any excise taxes?

Hey, I got the wrong "CHANGE"!

www.loyaltoliberty.com

Besides my regular job, I

Besides my regular job, I am a part time trader.  That part of my income is subject to self employment taxes.  So, I pay both the 15.3% of payroll taxes through my employer and self employment taxes on a quarterly to the IRS.  My effective tax rate approaches yours. 

As you mentioned, taxes are going to get seriously expensive under the first stupid liberal.

Organize to kick the socialists out of office in 2010.  There are 33 senators up for election in 2010. If we only get three more truly conservative senators elected than we have now, we can filibuster most of this non sense that is being voted into law.   

Hit w/AMT 4/15

Finished my taxes yesterday and got hit with the Alt. Min. Tax this year for the first time.  About $3700 worth of extra tax because you know, $93,700 was just not enough for them.  Our average tax rate on Taxable Income is exactly 35% with the AMT thrown in.  This is with the horrible Self Employement Tax in there and 2.9% mediSCAM = $13000 for medicare alone.  I myself don't go to the doctor much and buy my medicine mail order from India.  Then we are paying full coverage and meds for other peoples care at $13,000 year.  Absolute blind robbery!  M-B

Hidden tax

"According to the CBO, taxpayers shelled out an average of 7.5 percent of their earnings in payroll taxes in 2006."

Anyone with any knowledge of economics or finance knows that this is just a silly. The fact that employers match this just means that it gets taken from you before you even see it. Ask anyone who is self employed and has to pay both halves. In effect, you are taxed at about 14% for  SS and MC.  Your employer could pay you 107.5% of what they do now without any increase in cost if they didn't have to hide it from you and sent it to D.C.

 

 

30%

I forgot to mention the following.

I couldn't guess on the amount of sales taxes, hotel taxes or whatever they call the taxes on phone and utilities I paid. But I figured out the main ones (property, payroll, state, fed and local income)and it came to 30% of my total compensation. On the tax side I included the employer share of Payroll taxes but I also included that as part of my income as well as the companies contributions to my 401k and medical coverage.

 I guess I got off easy compared to some.

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