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  • Chart of the Week: The Tax Burden on American Households

    Though the economic downturn has temporarily lowered overall tax revenues, the tax burden on Americans is still high.

    Americans who are scrambling to pay their taxes by Tuesday’s deadline are in store for more depressing news: The tax burden on American families has risen dramatically and will continue to climb into the future without action from Congress. This week’s chart outlines the growth of taxes over the past 45 years.

    Large tax increases are just months away. Jan. 1, 2013, is already being dubbed Taxmaggedon. Seven existing tax policies will end and 18 new taxes from Obamacare will begin, leading to a $494 billion tax increase at the start of next year. Heritage tax expert Curtis Dubay warned about the consequences:

    Although these tax increases will not start raising new revenue until next year, they are having a negative impact on the economy today. Families, businesses, and investors need to know how much tax they will pay in the future before making important economic decisions. The uncertainty caused by Taxmageddon means they are stuck in neutral while they wait for President Obama and Congress to act. This is slowing job creation and stopping many of the millions of unemployed Americans from going back to work.

    To relieve Americans from the large tax burden, Obama and Congress should remove the threat of Taxmageddon now. “That would assure families, businesses, and investors that their taxes will not rise sharply as the economy is still staggering to its feet and show the voters that Washington really can get important things done—even in an election year,” Dubay wrote.

    Americans are already paying significantly more than they did in 1965, when Great Society programs like Medicare and Medicaid were created. Without action, this historical trend is likely to continue.

    Posted in Featured, Obamacare, Scribe [slideshow_deploy]

    16 Responses to Chart of the Week: The Tax Burden on American Households

    1. Bobbie says:

      If everyone who didn't pay did pay their share of taxes and kept personally responsible for their own livelihood costs, it wouldn't be such a burden and wouldn't reveal the ugly selfishness and unwillingness to live the livelihood worked for! Well, and of course if the roles in government had been conducted with honor and American principles as pronounced ethics, there wouldn't be indignant, unconstitutional, preferential treatment with above treatment on the mindset to entitle anyone to anything of anyone else!

      • JJC says:

        Bobbie, Did you ever take an English composition class? That whole comment is nonsense. Not so much in what it says, because I frankly am having trouble understanding exactly what you mean, but in the atrocious way you have assembled your words. I suspect that this garbled syntax is a reflection of a garbled mind that produces garbled logic.

        • Bobbie says:

          Thank you very much! I myself thought so after I submitted but I'm grateful for your critique! English is very important to me as I value the language and appreciate the correction!

    2. Whenever I read the words 'Tax' and 'burden' in the same context, it just reminds me of how Joe said that 'it is patriotic to pay taxes'. I don't (personally) view my taxes as optional, and therefore, I'd love to express my dedicated patriotism in a much more local method, where I could watch my dollars clean the streets, or repair stoplights. this 'centralized government' thing has gotten way out of hand.

    3. RSOpengart says:

      Your chart might be more useful if it showed taxes by income levels. I suspect that we would see a much different picture.

      • perplexed says:

        MY thoughts, exactly. This chart is designed to stir emotions, not to invoke rational thought.

    4. Spiritof76 says:

      What is the tax to household income ratio? Also, did the charts use the fact that many low wage earners get tax credits, effectively not paying any taxs altogether?

    5. Al Coots says:

      Congress needs to focus on the foolish spending.

    6. Stirling says:

      Want to colaspe the Nany State, just personally stop overspending.. This is because if you don't spend it, the government can't tax it out of you.. Personal Saving is the Nany state's worst nightmare because it chokes the funding of it.

    7. Dorothy O'Neal says:

      I am a widow 88 years old with an income from annuities of 25.000 per year gross. When medicare and my insurance bills kick in I have less than 20,000 dollars per year to live on. I have just sent in my taxes of $562.00 to the government plus $32.00 to the state, so I guess next year if I am still alive, I will be paying more in taxes than today. I would like to see Obama live on this amount!

    8. Jim says:

      I agree with the person that stated ," you should post this chart on taxes paid on tax income brackets. Then show percentages of tax's paid per earnings." It is my belief that we spend way too much time chasing middle and low income tax payers, by the IRS.

    9. Joseph says:

      Most people I talk to think the bush tax cuts we only for the rich. I don't understand why the republicans are not shouting from rooftops that the reason 47 percent of american workers don't pay Federal taxes is his total tax cut package. He doubled the child exemption, doubled earned income exemption, did away with the marriage penalty. Why don't people understand that is why Obama did not do away with the bush tax cuts? If they go away, the lowest incomes will see an average tax increase of over 50 percent. The evil rich will only see a tax increase of 13.5 percent. This whole thing is Political Class warfare.

    10. Janice says:

      I recommend to stop shopping at Walmart and the Dollar Stores and save money so you can afford higher gas prices and taxes until we get Obama out of office. Those stores are full of plastics made in China that most people really don't need but impulse buy instead. We are only supporting China and other countries who supply cheaply made items that Americans think are bargains, and wouldn't buy otherwise. But all those items add up. I know, I've done it and was ashamed of myself when I carried my bags to the car.

    11. Tom W says:

      It's time for Value Added Tax. All consumers should be treated equally, if you have it to spend then tax it regardless to income. I would assume that accountants and lawyers are opposed to VAT because the rest of us would know how to calculated the taxes we spend. Presently the system is so complicated that accountants have to prepare many of our taxes. I don't have to worry much about the "Taxmaggeddon" but many will, I retired 15 years ago.

    12. JJC says:

      Whenever I see an article like this, or even when I hear some talking head commenting on "taxes", I am confused. Does this chart refer to income taxes, social security taxes, payroll taxes, or the total tax burden. If they are figuring the total tax burden do they include employer paid payroll taxes, various federal, state, and/or local taxes that are built into the cost of pretty much everything we purchase? How about corporate taxes? Aren't those all embedded in the purchase price of the products that we as consumers buy. Please clarify what type of tax and what portion of the total tax burden the article refers to.

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