IRS: 1,470 millionaires paid no income tax in '09

Not the best day to report this, but the IRS says 1,470 millionaires paid no federal income taxes in 2009.

Where did the money go? Tax "expenditures" (otherwise known as deductions, write-offs, subsidies or loopholes), charities, municipal bonds and tax payments to foreign governments, according to a recent IRS report (pdf) that ABC News noticed over the weekend and that the Los Angeles Times picked up today.

http://usat.ly/nOGUjj

it's crazy.

Wonder when Americans are going to say "ENOUGH."
Is the a "London" moment brewing on our horizon?
I would not surprise me in the least.
BHN

And it's controlled by the Congress that all of us elect.

If you earn much, it pays to do tax planning so as to avoid paying more tax than you need to.

I'd be interested in seeing how the various deductions, exemptions, credits, etc. for this group of people breaks down.

How much of the money went offshore? That's probably all bad in terms of its effect on the US economy.

How much went to things that benefit state and local governments, e.g. sales taxes, state income tax, property tax? Those are mostly good, because they keep things like schools and fire protection services running.

How much of it went to charities, and what kind of charities are getting this money? Some charities provide more widespread social benefits than do others. I donate money to Planned Parenthood every year.

How much of the deductions were for personal medical expenses? We all know how expensive health care can be, especially as we get older. My mom's federal income tax has been close to zero a few times because of medical expenses.

How much of the "lost" federal income was re-invested in businesses that hire people, which is good for everyone vs. things like home office expenses, which don't provide widespread goodness?

I'll hold off on having a conniption about this factoid until and unless someone answers these questions. I'll be taking a $5,400 federal tax credit for a solar energy system this year. If my taxes work out as I have planned, a person who saw just my AGI and my tax liability, with no information about any of the other relevant figures, just might naively think I cheated.

One who makes a million this year and may be worth little?

Or one who is WORTH a million who may earn nothing?

offsets. Assets are depreciated which doesn't give a clear view on any given year.

That means that 99.4% of millionaires DID pay federal income taxes! ONLY 0.6% OF MILLIONAIRES ARE FREE!!!!


"This OUTRAGE must be fixed IMMEDIATELY!!!111!!!!!!!!11" howled the Tea Party in fury! "No wonder there are no jobs anymore, when we discriminate against this poor minority group! FREEDOM!!!"

:eyes: