On Oct 31, 12:51*pm, wrote:
On Fri, 31 Oct 2008 12:28:20 -0400, Eisboch wrote:
How do you reduce taxes for 95 percent of the so called "working class"
when 40 percent don't pay any to begin with?

I keep hearing this myth. **All* working Americans pay taxes. *While the
lowest quintile is only 4.3%, and the second quintile is only 9.9%, they
still pay taxes.

Most people, when talking about paying taxes, are talking only about
federal income taxes. In that case it's not a myth, it's true.

You're quoting effective rates including FICA, and that's why the rate
turns into a positive number for the lower quintiles. However, you're
leaving out the fact that EIC effectively rebates the FICA payments
(and is tied to it), so including that we're back to people getting
more money back than they actually pay in.

Hence the truism that many people pay no taxes.