47%

Mitt Romney's statement that 47% pay no income tax is seemingly not in dispute. But when Obama "sympathizers" then say that over 28% do pay payroll taxes (plus the 47%) , they are trying to spread smoke so they can muddy the waters.       Ahhhhhh   payroll taxes        But just what are payroll taxes???   The primary payroll tax is the social security and medicare "contribution" toward retirement and medical care paid by wage earners.  Their employers also have to make an equal contribution.  In fact, for 2011 and 2012, employers are paying 6.2% for social security, while employees are paying only 4.2%.  Both pay 1.45% of all wages for Medicare.

If 28% pay payroll taxes, just how much do they pay?  Since that seems to be a figure the sympathizers hang onto, I would guess that it includes all people, including some who earn very little and hence pay little "payroll tax."  Technically, if a person works even 20 hours in a year, that person pays payroll taxes.  If you are paid wages, it is pretty hard to escape payroll taxes.

Even more damaging to their argument is that payroll taxes are not income taxes and do not go into any type of general fund like income taxes.  (Not withstanding PresO's movement of social security &  medicare money to general funds to pay for Obamacare.)


BTW ----- I have been analyzing PresO and Romney's Income Tax releases.  PresO includes payroll taxes in his calculation of total tax rate he pays.  Take that away and his paid tax rate is less than 4% higher that Romney's.



Mr. Romney was "caught" saying that 47% pay no income taxes and that they would likely not vote for him.  This is true and since that 47% percentage is likely to continue to grow as a percentage of Americans, this is indeed the last statistical chance for voting for a fiscally honest & realistic president.  People are not dumb.  They are not going to kick the gift horse in the mouth by voting for (fiscally prudent) Mitt Romney.  But we need to vote for him and to urge all those who are undecided and pay income tax to vote for him.

Coming Soon to a computer near you:  

Fiscal Cliffs and Financial Armageddon.

Click this to see what Wikipedia says about payroll taxes