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2010-09-23 12:36:36

The Popular Issue Talked Over the Media is That 47% of the Families do not owe a

<p>The popular issue talked over the media is  that 47% of the families do not owe any <a href="">taxes</a> for 2009 – the percentage being  up from 38% in 2007. The statement is a shorthand form of saying that the rich  are shouldering more of the tax burden than before because of an increasing  number of American citizens being reduced to penury and living off dole.</p>
<p>But experts feel that neither of the  statements is true in the real sense – the 47% being tax free and the rich  being overburdened. The tax issue is going to be a hot <a href="">political</a> one during the  next couple of years – perhaps the hottest. Thus it is worthwhile to understand  who is really paying what in the form of taxes. Only then can one understand  the fiscal options of the nation. How can the budget deficit be bridged with  less revenue and more service requirements?</p>
<p>There is no doubt that the taxes on the  richer sections will increase than on the poorer group. Over the previous three  decades the rates have dropped for the wealthy rather than the other sections.  The rates have dropped the most for the super rich during that time.  Simultaneously their earnings have gone up astronomically compared to other  sections of society. The earnings of the majority of the workers have increased  only modestly faster than the speed of inflation.</p>
<p>So currently wealth is concentrated among  the top few with each dollar being taxed less than before. However there is no  denying that only by taxing the rich the <a href="">problem</a> of the budget deficit cannot  be solved in the long term. The deficit is yawning. But if the wealthy do not  pay increased taxes then there will be only two options left before the  country.</p>
<p>Taxes will have to be <a href="">increased</a> more than what  it would have been if the rich were taxed. Alternatively it will have to make  heavy cuts in social services like Medicare and Social Security as well as  military expenditures and other popular federal plans.</p>
<p>The focus on 47% is actually distracting the  public from reality. The number is not erroneous. The two stimulus programmes  inked by Bush and then Obama have raised the number of families that get more  tax credit.  But two words need to be  noted ‘federal’ and ‘income’. People pay other types of taxes apart from income  tax – payroll taxes, <a href="">investment</a> taxes etc; there are also state as well as  local taxes. All this should be taken into account before drawing conclusions.</p>

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