Most of keep reading about the 47% of Americans who “don’t pay taxes” and who Romney may have given up on. Is this true? I’ve been looking for sites that had more detail on who doesn’t pay taxes and why and found a very interesting website (see below).
According to this study the majority of Americans pay either “income taxes” or “payroll taxes.” How can you pay payroll taxes – meaning you work – and no income taxes. If you read this article its interesting to see what tax brackets and credits were put in when the Republican Party was in control.
The author of this piece from The Washington Post notes: The vast majority of the people who pay no “income tax” are either seniors and or those who pay “payroll tax.”
“Many of these working poor” may have low paying jobs because this is all their skills qualify them for. With children many people who work and pay “payroll taxes” get Credits – which were put into place while Republicans had a majority – that leaves them in the net position of owing less than zero – they get money back. You can like this or not but its the law and it was with us long before President Obama.
Additionally – and it’s difficult to put a number on it but a great many of the people who pay no taxes are unemployed. They want to work but they cant find work so they pay no taxes.
It was also very interesting for me to note that as the population ages the percentage of them that pay no “income taxes” rises dramatically. A large portion of Americans who pay no income taxes are elderly. There is no direct tax on SS if you don’t have earned income and if your overall income is low – which it is true for many seniors you file and you don’t owe.
Conclusion and interpretations: Let’s take a moment and break down the group of Americans who pay no income taxes. They are:
1. The unemployed – and we know there are at least 8% of them. Throw in those that have given up looking and are working part time and it may be 15%.
2. Seniors – they just don’t make enough money to owe tax
3. People who have jobs and go to work and pay “payroll tax” but whose skills and pay are so low they don’t owe any income tax.
What does this mean for the chances of Romney getting elected?
1. I personally know many people who are unemployed, under employed and or who have given up. I believe that many of them will vote for Mitt and they want the economy to get better so they can find work and restore their personal self confidence and support for themselves and their families.
2. Seniors – sure many of them are old line Democrats who live in south Florida and will always vote the Democratic ticket. However, I personally know a good many seniors who are supporters of Romney – don’t like Obama for other reasons than money – and will be voting for Mitt.
3. Those who work and pay “payroll tax” but no income tax. Probably many of these people have given up on advancing themselves and will vote the all the transfer payments they can get. However, not 100% of them are Democrats and or people who only focus on what they can get from the Government. Surely a handful of the people want a better life for themselves and a stronger economy could do that for them.
Just for argument’s sake lets say that:
1. 30% of the unemployed and under employed and those who have given up vote for Romney
2. 30% of Seniors who pay no tax vote for Romney – personally I think it will be higher.
3. 10% of the working poor vote for Romney because they think he can do a better job with the economy or just don’t like Obama for other reasons.
You do the math – its possible – that 20% of the 47% or approximately ten percent (10%) of the population – 10% or more of those who don’t pay income tax will vote for Romney. They may want a better economy – they may not like having a Muslim leaning President – they may be like me and have long since gotten over voting for the Black candidate just to show how open minded we are.
If true – I am encouraged that Mitt hasn’t lost all the 47% – actually 46.4% – who pay no income taxes and this race is a damn site tighter than we think and Mitt might even win this thing. I sure hope so and then Marty and I can release the option we have taken for a building lot in Costa Rica.