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WOW! Taxes at Lowest Since 1950!


By Brian Altenhofel - Posted on 11 May 2010

According to USA Today, you have no reason to complain about high taxes because tax revenues were at their lowest since 1950.  I bet this is used as justification in the near future to raise taxes dramatically.

Federal, state and local taxes — including income, property, sales and other taxes — consumed 9.2% of all personal income in 2009, the lowest rate since 1950, the Bureau of Economic Analysis reports.

Well, yeah.  That makes total sense.  For more than two years, we've been in an economic recession.  When we are in a recession, our incomes go down.  When incomes go down, taxes go down.  Now here's how they really try to get you to think that we need higher taxes:

Taxes paid have fallen much faster than income in this recession. Personal income fell 2% last year. Taxes paid dropped 23%.

Obviously, they haven't looked at the tax brackets recently.  When your income falls and drops you into a slightly lower bracket, you pay a lower percentage on income taxes.  When you go below a certain point, you break even and pay NO taxes (refund = amount withheld).  Anyone earning income below that point gets paid by the government.

When does Uncle Sam pay you?  If you are the "typical" family of four, a household income of $50,000 will net you a PROFIT from the government, as in your refund will be MORE than you had withheld.  (By the way, 50% of American pay ZERO taxes or get paid by Uncle Sam.)

If people actually believe that this is justification enough to raise taxes, then those people are stupid.

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