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The rich get richer

I’m going to make a wild guess that most of you don’t fall into this category:

WASHINGTON – As millions of procrastinators scramble to meet Monday’s tax filing deadline, ponder this: The super rich pay a lot less taxes than they did a couple of decades ago, and nearly half of U.S. households pay no income taxes at all.

The Internal Revenue Service tracks the tax returns with the 400 highest adjusted gross incomes each year. The average income on those returns in 2007, the latest year for IRS data, was nearly $345 million. Their average federal income tax rate was 17 percent, down from 26 percent in 1992.
Over the same period, the average federal income tax rate for all taxpayers declined to 9.3 percent from 9.9 percent.

The top income tax rate is 35 percent, so how can people who make so much pay so little in taxes? The nation’s tax laws are packed with breaks for people at every income level. There are breaks for having children, paying a mortgage, going to college, and even for paying other taxes. Plus, the top rate on capital gains is only 15 percent.

There are so many breaks that 45 percent of U.S. households will pay no federal income tax for 2010, according to estimates by the Tax Policy Center, a Washington think tank.

“It’s the fact that we are using the tax code both to collect revenue, which is its primary purpose, and to deliver these spending benefits that we run into the situation where so many people are paying no taxes,” said Roberton Williams, a senior fellow at the center, which generated the estimate of people who pay no income taxes.

Someone like you

Adele:

This time tomorrow

The Kinks:

Do what you want, be who you are

Hall & Oates:

Big red sun blues

Lucinda:

Flood warning

Until 4 a.m. Sunday. This thunderstorm has lasted a couple of hours already.

Rainbow Pie

Go read the introduction to Joe Bageant’s book.

Hedge funds

Huh! What are they good for? Absolutely nothing!

A long way from home

Ray and the gang:

Several thousand

That double rainbow ain’t got nothing on you…

Jim Boggia live in Japan:

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