The Truth on Taxes
What You Need to Know
- The government collected less in taxes in 2010 than it has in over three generations, and tax rates are at historic lows.
- 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.
- Corporate income taxes totaled about 1 percent of GDP this year, 60% lower than 40 years ago.
- General Electric, which reported $5 billion in US profits, paid ZERO taxes this year. Exxon Mobil, the most profitable corporation in history, paid ZERO federal taxes in 2009.
- The Bush tax legacy means we currently tax wealth less than work: middle-income paychecks are taxed at 25% compared to stock dividends and capital gains for the wealthiest, which are taxed at a top rate of only 15%.
- While most small businesses dream of making a killing, only 3 out of every 100 small business owners pay taxes at the highest rate.
- A Wall Street transactions tax of only 0.50% on short-term speculation could raise up to $170 billion annually.
- 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.
- Upper income households save an average of $5,500 thanks to the mortgage interest tax deduction.
- Only four OECD nations collect less revenue as a percentage of GDP than the United States: Chile, Korea, Mexico, and Turkey.