American Millionaires: 1,400 Paid No U.S. Income Taxes In 2009

[onehandle]

Source: Huffington Post



New tax data from the Internal Revenue service shows that in 2009, incomes fell, unemployment claims rose, and the U.S. economy shed nearly two million taxpayers. And of the 235,413 taxpayers who earned $1 million or more in 2009, 1,470 of them paid no taxes.

According to the data, the average income for American taxpayers fell to $54,283 -- a drop of $3,516, or about 6.1 percent, between 2008 and 2009. Not only that, but the overall number of taxpayers -- that is, individuals or married couples filing with the IRS -- fell by almost two million.

"What you're seeing is the devastation of the massive loss of jobs and the effects of the real recession on real Americans," said Ed Kleinbard, a law professor at the University of Southern California. The numbers, part of a package analyzing 2009 tax returns that the IRS has just made available, reflect a grim picture of the recent past.

Tax returns filed in 2009 largely speak to the state of the economy in 2008 -- a time when unemployment ballooned, markets dropped precipitously and the economy languished in recession. The IRS’s data is unlikely to surprise any of the millions of Americans who were out of work in 2008 and 2009. The unemployment rate climbed from 5 percent in April '08 to a 25-year high in February ’09, and continued to rise for several months, topping double digits that fall with a rate of 10.2 percent.

Read more: http://www.huffingtonpost.com/2011/08/04/irs-incomes_n_918458.html

[trotsky]

1. No wonder we can't get jobs created!

We can't give these esteemed Job Creators another tax break if they already pay no taxes! We've got to figure out a way to give these millionaires MORE MONEY! Our nation depends on it!

[KarenS]

2. yep,,,, perhaps a bailout would help them.

:eyes:

[SpiralHawk]

3. "Fantastic." - Republicon FatCat PuppetMasters, Inc. (R)

"Too bad about you little people, you smelly American proles. Have fun with the Debt program our stoopid suckerpuppets (TeaBaggers) just shoved up your hard-working butts. Bwaaa ha ha ha ha!

"More more more tax cuts for the rich! Smirk. Sneer."

- Republicon FatCat PuppetMasters, Inc. (R)

[Roland99]

4. sensationalistic headline. 0.6% of that group paid no taxes in a year when investments were hit hard

I can understand investment losses offsetting income, or real estate holdings.

[midnight]

5. What the hell is the IRS doing coming after the those making less ?

Why are they going after these millionaires? Fair Share/balanced blah blah blah...

[joeglow3]

9. IRS spends VERY little time going after those making less

The most they usually is a quick desk audit. Now, if they are blatantly violating the law, the IRS will follow. Case in point was a friend of mine who owned his own lawn care company and decided to not pay payroll taxes.

However, when I was in public accounting, our higher wealth clients were getting audited all the time. Now that I am in private accounting, the company I work for is under year round, continous real-time audits.

Years ago, there was a program whereby the IRS would randomly select X number of people to be audited. This meant everyone had an equal chance. That change once funding for that specific program went away.

[naaman fletcher]

6. Did they have income? nt

[AlbertCat]

10. Did they have income?

"taxpayers who earned $1 million or more in 2009,"


There are lots of millionaires who don't earn a mil in income.

[AngryAmish]

11. Definitions are changing

Used to be a millionaire had a net worth of 1 million.

This definition is if you make 1 mil a year you are a millionaire.

[spooky3]

7. Interesting, but understates the problem. Income tax data doesn't record

losses in 401ks or other retirement accounts, nor in home values (if unsold).

[joeglow3]

8. Okay, the tax CPA in me wants more details

Are they excluding NOL's. Given I bet there were a hell of lot of losses thrown off from s-corps, LLC's and partnerships in 2008, how many of those lost $1M in 2008 and $1M in 2009? Under that scenario, I don't see an issue. If someone makes zero over a 2 year period, why should they owe taxes on zero income?

Granted, ignoring the million dollar loss in year one and only reporting on the gain in year does make for a better headline.

[Major Hogwash]

12. Thank you very much for this very great thread of interest!!!

I wondered just how many stupid Tea Party House members were from the West.
I knew that Raul Labrador was a fluke!!

Does anyone have a complete list of the infamous 87 Tea party members from the House?
That's a list I would like to see.

[_ed_]

13. "The Real Base"

of both political parties.