The fact that this headline came from CNBC is pretty astounding. Apparently somebody over at the NBC family of networks actually has a brain large enough to comprehend some basic economics (which is shocking, I know).
The report here covers the CBO’s findings we discussed on this blog earlier in the week. The top 40% of income earners pay all income taxes…and then some.
Buried inside a Congressional Budget Office report this week was this nugget: when it comes to individual income taxes, the top 40 percent of wage earners in America pay 106 percent of the taxes. The bottom 40 percent…pay negative 9 percent.
You read that right. One group is paying more than 100 percent of individual income taxes, the other is paying less than zero.
It’s right there in Table 3 on page 13 of the report. The numbers are based on 2010 IRS and Census Bureau figures.
How does someone pay negative taxes? The CBO’s formula offsets whatever taxes are paid with “refundable tax credits.” Some of these are due to “government transfers” of money back to the taxpayer in the form of social security and food stamps.
read the rest
I’m glad to see that CNBC can still do some math. Somebody over there needs to make a phone call to their sister network MSNBC and set them straight.