Why Are We Afraid to Tax the Super-Rich?

[Shar]

OK...I would be interested to see it.

[iwasthere]

shar when i find the article i will post it here on the forum. it is confusing but reading the article will clear this matter up.

[Shar]

I will try again here.....there is no Ohio income tax for corporations, even if you have an Ohio corporation.

[iwasthere]

corps that have their headquarters located in new jersery when they do business in ohio do not pay ohio's state income tax because their articles of corp are located in new jersery. if, i find this editoral piece on this subject i will give you the date of this written piece.

[Shar]

Not quite sure what you are referring to there....

There is no state income tax in Ohio for corporations.  Businesses pay CAT tax (Commercial Activity Tax).  It is based on gross receipts, not net income and it applies to all receipts in Ohio. 

[iwasthere]

did ohio close the loophole with corps in ohio, who do not pay state income tax because their headquarters are located in states that do not tax corps income aka new jersery?

[sfc_oliver]

 The top 50 percent of Ohio taxpayers paid 94 percent of all Ohio income taxes in 1998, compared to only 6 percent for the bottom 50 percent of tax filers.

Broken down even further, the 1998 share paid by the top one percent of taxpayers paid 20 percent of the state�s income taxes. The top 5 percent paid 44 percent and the top 20 percent paid just over half at 51 percent.

http://www.buckeyeinstitute.org/article/502

I wonder where Dennis hid his link?

[Shar]

Following are the Ohio income tax calculation for this year.  As income increases, the tax rate increases.  Most local income taxes and school district taxes are flat rates. 

Ohio Taxable Income Tax Calculation
0 – $5,000 0.618% of Ohio taxable income
$5,001 – $10,000 $30.90 + 1.236% of excess of $5,000
$10,001 – $15,000 $92.70 + 2.473% of excess over $10,000
$15,001 – $20,000 $216.35 + 3.091% of excess over $15,000
$20,001 – $40,000 $370.90 + 3.708% of excess over $20,000
$40,001 – $80,000 $1,112.50 + 4.327% of excess over $40,000
$80,001 – $100,000 $2,843.30 + 4.945% of excess over $80,000
$100,001 – $200,000 $3,832.30 + 5.741% of excess over $100,000
More than $200,000  $9,573.30 + 6.24% of excess over $200,000

[irishbobcat]

Low-and middle-income Ohioans pay a much greater share of their income in state and local taxes than the state's most affluent do, according to a study by Policy Matters Ohio.

The top 1 percent of non-elderly Ohio families by income, who earned at least $352,000 in 2007, on average pay 7.8 percent of their income in state and local taxes. By contrast, the lowest fifth, who make less than $17,000, on average pay 12.0 percent. Families in the middle fifth of the income spectrum, who make between $32,000 and $50,000, on average pay 11.0 percent.

Recent changes in Ohio's state and local tax system have increased the disparity. The report found that Ohio ranks 28th among states in the fairness of its tax system, based on the share of their income affluent Ohioans are paying in state and local taxes compared to that of lower- and middle-income Ohioans. Last time the study was done, which covered the law as of 2002, Ohio ranked 14th by this measure.

The national report, Who Pays? A Distributional Analysis of the Tax Systems in All 50 States, was produced by the Institute on Taxation and Economic Policy (ITEP) and released in Ohio by Policy Matters Ohio and The Center for Community Solutions. It reviews every state's tax system based on permanent changes in law enacted through October 2009 and income levels from 2007 (the most recent year that necessary data is available across states).

"No one would ever design an income tax with lower tax rates for the best-off taxpayers," noted Matthew Gardner, ITEP's executive director and lead author of the study. "But that is exactly what Ohio's tax system overall does: It allows the very wealthiest individuals to contribute less of their income, on average, than middle- and lower-income families must pay. In other words, Ohio has an unfair, regressive tax system."

[sfc_oliver]

You don't read much do you Dennis. This is almost common knowledge. Though I'll admit my memory was a touch faulty.
In 2007

Top 1% paid 40.42 % of income taxes
Top 5% paid 60.63% of Income taxes
bottom 50% paid 2.89%

So I still ask How they pay less?



http://www.ntu.org/tax-basics/who-pays-income-taxes.html

[Rick Rowlands]

The IRS says that, actually!

[irishbobcat]

who said they pay 80%?? A conservative guru?

[sfc_oliver]

How does "the top 5% pay 80% of the taxes" equate to less than middle America? Please Dennis you are supposed to be part of our education system, please tell me you don't ever even enter a math class.

[irishbobcat]

The super rich need to pay their fair share, not less than what middle america pays.....

[sfc_oliver]

I don't know very many rich people, But I do know that the home improvement company I used to work for paid a lot of taxes. And I mean a lot. I don't understand how paying 35% vs 10% or 0% isn't paying their fair share. But I'm sure you can tell me how all those rich people cheat and still the top 5% pay 80% of the taxes....I just can't see villianizing everyone who makes a decent wage.