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BLOG: Who Are the 47%?

As we head into the last six weeks prior to the November Presidential election, Mitt Romney's secretly recorded comments to very wealthy donors regarding the "47%" of Americans who pay no federal income taxes have become the latest talking point of the campaign. Romney went on to say, "I'll never convince them [47%] they should take personal responsibility and care for their lives".

Conservative blogger Michelle Malkin tweeted, "This election is about America's makers vs. America's takers." She insinuated that the "47%" are takers.

Ann Romney says her husband's comments were taken "out of context".

Obama campaign manager Jim Messina stated this about Mitt Romney, "It’s hard to serve as president for all Americans when you’ve disdainfully written off half the nation".

So just who are the "47%" of the people that pay no federal income tax? Are they lazy slugs who depend on the government for assistance as some may suggest? Are they all Obama supporters?

The non-partisan Tax Policy Center (http://thehill.com/blogs/on-the-money/domestic-taxes/250029-tax-policy-center-analysis-details-the-47-percent) has done an intriguing analysis of who these people are.

Some of the highlights from that analysis:

1.  About half of the "47%" pay no federal income tax because they earn less than $26,400. This would describe the income tax return of a family with two children.

2. About one-third of the "47%" are either seniors or low income working families with children that get specific tax breaks (elderly credit, child care credit, etc.)

The Tax Policy Center estimates that 90% of the "47%" earn less than $50,000 per year. Some higher income earners may also qualify for no federal income tax through itemized deductions. A small percentage of millionaires also pay zero income taxes through preferences such as tax-free interest from state and local bonds.

Of course, the "47%" most likely pay sales taxes, payroll taxes, property taxes (either through ownership or rent), fuel taxes, etc. and thus are contributing in some form.

I would suggest that probably about half of the "47%" are or were Romney supporters as our country is split mostly 50/50 on political lines. Clearly a significant part of Romney's base is seniors who he appears to unknowingly dismiss.

Will this misstep cost Romney the election? Was it a misstep? Is this "class warfare"? Romney believes it is the simple truth.

Do you agree with the suggestion that 47% of Americans who pay no federal income tax are "takers"? My opinion is most are working stiffs, elderly, and students who are just struggling to make ends meet in a difficult economy.

Honeygo Hal

3:02 pm on Wednesday, September 19, 2012

Just one more fumble-mouth gaffe in a long line of them. Mitt is toast. Many of the undecided swing voters will see that Mitt has this problem relating to the average voter.

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Steve

3:23 pm on Wednesday, September 19, 2012

I've noticed that a number of Republican candidates are trying to put as much distance as they can between themselves and Mittens after he dropped that Clanker.

Time had a good piece on the "47% 'ers". LOL Most of them live in Republican controlled states.

http://swampland.time.com/2012/09/18/five-charts-illustrating-the-problem-with-romneys-47-remarks/

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Honeygo Hal

8:48 am on Thursday, September 20, 2012

"Mitt" spoke of shrimp - soon he will be Shrimp Toast...

John

9:04 am on Thursday, September 20, 2012

"About half of the "47%" pay no federal income tax because they earn less than $26,400. This would describe the income tax return of a family with two children."

"The Tax Policy Center estimates that 90% of the "47%" earn less than $50,000 per year."

Obama repeatedly talks about everyone "paying their fair share" yet none of these people have to pay even a penny? Even if it is $50-$100 per year that is still something. How is it fair to ask the wealthy to shoulder the majority of the tax burden yet tell millions of citizens that they dont have to pay anything? I am a hardworking middle class person with a home and family and I definitely feel like I pay my share yet I am tired of most of my tax dollars going to entitlements. Even worse, some who receive those entitlements then complain that its not enough and they should be getting more. And if those in lower income situations dont have to pay anything then they should at least have to do some sort of documented community service or volunteerism. It sickens me to see the apathy of some people and wish they would take steps to better their own life, instead of relying on the government.

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Spring Heeled Jack

10:07 am on Thursday, September 20, 2012

We see more entitlements (handouts as uninformed people say) because starting in the 1970's prices on food, gas, and housing began to rise faster than the average cost of living. Today the average cost of living is above what the middle class is defined as. Hence, why credit card debt (supplemental income) and personal loans have sky rocketed since the 80's. Now that credit and loans has been drastically cut by the banks... we have the middle class suffering and lower class being destroyed and we are in a serious depression. This current condition 100% started in the 1970's and has gotten worse ever since. (Question this: Remember the days in the 60's and prior when you could work as a shoe salesman and have a nice house, nice car, nice tv, and a vacation every year... with no credit cards? So what has changed since those days? Prices have soared and profits by corporations have sky rocketed at the cost of the middle class and lower class.)

ALL presidents from Nixon, Johnson, Carter, Reagan, Bush 1, Clinton, Bush 2, and Obama NEVER cut entitlements, but added them. In fact, Democratic presidents have seemed to focus on entitlements for middle class and lower class citizens; while Republican presidents have seemed to focus on entitlements and tax breaks for the Upper class and corporations. Take it for what it is but its the truth!

BTW: I heard an interesting fact from the Commerce Dept. a year ago. Minimum wage at today's cost of living should be $12.50.

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John

10:19 am on Thursday, September 20, 2012

This is all quite interesting and I am sure factual but the underlying issue is that the government does not have to cut entitlements if more individuals would take responsibility for their own situations. Entitlement spending could decrease on its own. I do not agree with any argument that there is not enough opportunity for this to occur. At work everyday I walk past people in the city just sitting on their porches in the middle of the day doing nothing but talking, drinking, and smoking. I understand some may be unable to work but I will bet the majority, even though they will complain the government should give them more, are just okay with the status quo of barely getting by and not paying taxes.

John

10:23 am on Thursday, September 20, 2012

Although I guess I live in a fantasy world where people are supposed to believe in hard work in a capitalist society not government handouts and socialist principles.

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Tim

10:45 am on Thursday, September 20, 2012

our government is nearly capitalist nor socialist. Nor should they be. People who claim this government is based on socialist principles have no idea what socialism actually is in implementation.

Additionally, "hard work" and 'capitalism' are not necessarily synonymous. Capitalists take unfair advantage of hard working people every day. They'd do it more, if not for 'reasonable' government regulation.

In fact, this current economic climate is specifically caused by capitalism left unregulated. So be careful what you ask for. You might get it.

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Spring Heeled Jack

4:52 pm on Thursday, September 20, 2012

I agree Tim. Major corporations and the wealthiest 3% take full out advantage of the government with lobbyists and handouts to politicians for favors and favorable laws and tax breaks. Corporations take way more entitlements from the government and the everyday citizens via government and citizen employment.

If "Joe the Plumber" ever gets into dire straits and needs a favor from the Feds... do you think he will get it?

If Mitt Romney needs a perk from the Feds to allow his corporation to send jobs over seas and to break down off shore account restrictions... do you think he got it?

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Spring Heeled Jack

5:00 pm on Thursday, September 20, 2012

Funny true story of how Politicians are entitled and get perks.

In the late 1980's, Joppa Rd. (between Harford Rd. and Old Harford Rd.) a Baltimore County Politician complained about back ups during both rush hours in that 1.5 mile stretch. He used Joppa Rd daily to go from his house to Towson. There was no money for expansion. He twisted and gave perks and so on to get it done. ~100 middle class home owners on that strip lost 40-50% of their property to eminent domain.

Perfect example how one rich politician takes and makes entitlements for his own personal wants; while middle class tax payers gets tromped by the system.

John

10:58 am on Thursday, September 20, 2012

wow...Tim just knows everything. You are correct in that we do not have a socialist government however there are many characteristics of socialism and you cannot deny that our government, by over time increasing the amount of tax dollars taken from the public to distribute through welfare, food stamps, etc..., has increased its role in that aspect. And hard work may not be synonymous with capitalism but apathy and laziness perpetuated by government "handouts" are associated with lower income. This is not to say that all people on entitlements are lazy but that you can find a large number who are.

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Tim

11:28 am on Thursday, September 20, 2012

John: Glad you got that figured out.

Seriously though, there are so many brainwashed right (and left) wing folks out there (including on here) that I can't assume from your inital post you actually have a fully objective and functioning mind.

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Spring Heeled Jack

5:03 pm on Thursday, September 20, 2012

How do you explain rich people taking entitlements by paying 14% tax rates? How do you explain major corporations taking advantage of the everyday tax payers by buying tax breaks, perks, and new laws to favor the wealthy?

John

11:01 am on Thursday, September 20, 2012

I dont even know why I got into this conversation because clearly the values of hard work and self-responsibility have taken a nose dive in this country and half the country thinks that this is okay.

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Tim

11:26 am on Thursday, September 20, 2012

Totally agree on this post. I can raise my kid not to be this way, you can raise your kid(s) to be self responsible but for every one of us, there's two others who aren't doing so.
It's terrible.

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Spring Heeled Jack

5:05 pm on Thursday, September 20, 2012

Has nothing to do with that John. In fact: Americans today work more hours and longer schedules and even two or more jobs just to get by. In the 80's it was unheard of to have a need to work 2 jobs. You are backwards on your comments.

FIFA_archived

2:26 pm on Thursday, September 20, 2012

Most of the 47% that are not elderly work. Did you miss that? They make diddly for wages. Take a $100 from them! Absurd.

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John

3:25 pm on Thursday, September 20, 2012

No...actually did not miss that at all. So asking someone who makes $10000 a year to pay .01 % of their income is absurd? I am sick of the "pay your fair share" talk when people who do earn income by working do not have to pay ANY federal income taxes. Increasing the tax rate on the wealthy does nothing when the majority of their income is from capital gains and dividends. And if anyone for a second thinks that if they were wealthy they would not disburse their money in ways to reduce their tax burden they are both a liar and an idiot.

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FIFA_archived

3:42 pm on Thursday, September 20, 2012

You are sick. They already pay payroll taxes of 7.65% that Romney avoids. Go read your bible.

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FIFA_archived

3:45 pm on Thursday, September 20, 2012

PS - dummy, $100 is 1% not .01%., you missed by a factor of 100. That $100 is important to someone making $10,000 a year, fool.

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FIFA_archived

3:47 pm on Thursday, September 20, 2012

PS fool, change the rate for the wealthy, they suck from the rest of us.

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Spring Heeled Jack

5:08 pm on Thursday, September 20, 2012

Then raise minimum wage to were all economists agree it should be: $12.50 an hour. That will decrease the need for entitlements. Oh thats right, if they did that business owners and corporations would all go bankrupt and Mitt would have to take a pay cut.

John

3:54 pm on Thursday, September 20, 2012

I apologize for miss typing 1%. Excuse me. But you really drove home the point that its a significant amount with that correction. Is $13000 not important to someone making $50000? And I dont attend church so dont make assumptions. Also glad to see you have such class and maturity.

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FIFA_archived

4:14 pm on Thursday, September 20, 2012

John, you used the words liar and idiot, not me.

I will ignore your use of perjoratives in this instance calling others liars and idiots. You made a math mistake. I get upset when people presume the 47% are worthless. Most of them struggle to feed their children, they work, they paId for their Social Security and are now described as the entitled? No, they are simply poor.

PS I don't go to church either. Nor am I an idiot or liar.

John

8:24 am on Friday, September 21, 2012

If you read the statement I did not call you a liar or an idiot. I said that anyone who says they would not disburse income in order to reduce their tax burden would be a liar and an idiot. you did not say such a statement.

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FIFA_archived

3:35 pm on Friday, September 21, 2012

John, what you say about liar and idiot is true. However, your statement falls short. The wealthy frequently disburse their income in ways that are fraudulent in an attempt to minimize income. Swiss bank accounts and Cayman Island accounts and $100 Million IRAs raise a lot of suspicion as these are frequently identified with tax fraud, not tax avoidance.

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