Median family income tax about zero
Robert Waldmann
I have long thought that the nuclear option for the Democrats to crush the Republicans was to reform the tax code so most families pay negative income tax.
Now I learn that they have very nearly done that.
Via Ezra Klein STEPHEN OHLEMACHER reports for AP.
WASHINGTON (AP) — A typical American family would get a tax cut under President Barack Obama’s budget proposal, and their low-income neighbor would fare even better.
Their wealthier counterparts, however, would face some steep tax increases, starting in 2011.
Families making as much as $50,000 would owe no federal income taxes, as long as they have at least two children, according to an analysis by Deloitte Tax LLP.
A typical family of four making $50,000 a year would receive a payment of $40, according to the Deloitte analysis. A similar family making $35,000 a year would get a payment of $4,100, an increase of $1,200. Before the stimulus package was enacted, that same family would have owed $760 in federal income taxes.
The median household income was $50,233 in 2007, according to the Census Bureau.
Median family income was lower, since unmarried adults living together are one household but two families. However the typical voter is part of a family with less than four members. Still they are getting very close to a negative income tax paying majority.
The founders (and John Stuart Mill) were afraid of tyranny by such a majority. I think it is just what the country needs.
(that should get some comments he mutters)
update: Fox News, yes that Fox News provides more evidence in this pdf (as if it were needed) that the US public is itching for a class war.
update 2:
Some of the Fox news questions were slanted to almost push poll levels. However, the desire to soak the rich made it through the pollster.
Diageo Hotline also finds strong support for raising taxes on the rich (via dailykos).
“There is also strong support for President Obama’s proposal to raise taxes on the affluent (67%) in 2010”
I checked the question in the poll included the words “…President Obama also proposed raising taxes starting in 2010 on …” warning pdf. Huh ? I thought the increase started in 2011 !?!
The AP reports that the tax increase will start in 2011 “It also raises taxes starting in 2011 on households that earn more than $250,000 a year.”
I’d say the wording of the question contained a false assertion on a matter of fact that grossly pushed respondents towards answering “no.” Diageo Hotline presented the false Republican claim that Obama proposed raising taxes in a recession, at least in the same year he proposed a stimulus.
In spite of that 67% of respondents were in favor.
off to google.