8 Million More People Leave the Tax Rolls
One of the most perilous developments of recent years has been the rise in the percentage of Americans who pay no income tax. According to the Tax Foundation, 59 million Americans—42 percent of all filers—had zero or even negative income tax liability. Now, a new report from the Joint Committee on Taxation says that, thanks to Obamacare’s exchange subsidies, an additional 8 million Americans will no longer have an income tax liability. If present trends continue, we will soon live in a country where a majority of Americans pay no income tax. This may sound like a good thing, but it’s not. In fact, it’s quite worrisome.
The Republicans went along with removing low-income workers from the tax rolls in return for Democrats supporting some Republican initiatives. This was a mistake. When a significant segment of the workforce does not contribute to the cost of government, they have an insatiable demand for government services.
As soon as a majority of Americans figure out how to vote themselves benefits from the public treasury without paying for them, we’re in serious trouble.
That’s a great excerpt from Governor Daniels’ book. I appreciate when politicians can see the error of their ways and admit it.
If the present trend continues, it will contribute to the killing of the middle class. They are the ones who will face the greater tax burden and thus the greater overall economic burden of the trend.
It seems to me that the problem is that too many people are not paying any net income taxes because their incomes are too low. Definitely a problem, but the solution is not raising taxes on the poor.
I think this is what really makes it difficult to shrink the federal government and restore fiscal responsibility for social services to state and local governments.
If only half the households (and shrinking) pay federal income taxes, but everyone pays sales taxes and almost everyone pays property taxes, it is no wonder the people tolerate the fiscal liability of the welfare state climbing every upward, both in terms of dollars spent and level of government responsible.