Bookmark and Share
Labor's Edge: Views from the California Labor Movement

The Truth About Taxes

by Tula Connell, AFL-CIO

In this cross-post from Our Fiscal Security, Tamara Draut, vice president of Policy & Programs at Demos, gives us a quick list of the top 10 tax stats.

1. The government collected less in taxes in 2010 than it has in over three generations, and tax rates are at historic lows.

2. The Bush tax cuts added $1.7 trillion to the nation’s debt over 2001-2008, which is more than it would cost to send 24 million kids to four-year public universities.

3. Corporate income taxes totaled about 1 percent of GDP this year, 60 percent lower than 40 years ago.

4. General Electric, which reported $5 billion in U.S. profits, paid ZERO taxes this year. Exxon Mobil, the most profitable corporation in history, paid ZERO federal taxes in 2009.

5. The Bush tax legacy means we currently tax wealth less than work: middle-income paychecks are taxed at 25 percent compared to stock dividends and capital gains for the wealthiest, which are taxed at a top rate of only 15 percent.

6. While most small businesses dream of making a killing, only 3 out of every 100 small business owners pay taxes at the highest rate.

7. A Wall Street transactions tax of only 0.50 percent on short-term speculation could raise up to $170 billion annually.

8. A middle-class family with two young children receives on average $1,200 through the federal child care tax credit, yet the cost of their child care averages $18,000.

9. Upper income households save an average of $5,500 thanks to the mortgage interest tax deduction.

10. Only four OECD nations collect less revenue as a percentage of GDP than the United States: Chile, Korea, Mexico and Turkey.

Posted on 04/18/2011Permalink

More posts by Tula Connell

Post a Comment

We welcome your comments on this article. Please complete the form below to add to the conversation.

Please Note: California Labor Federation reserves the right to edit or remove any comment that is deemed inappropriate, off-topic, abusive or offensive.

Thank you for participating in the public dialogue!

(required)

(required: will not be made public)

Remember my personal information


To help protect our site against spam, please enter the word you see in the image below:


Notify me of follow-up comments?