Who's paying? U.S. Taxes

axINEFFICIENCY At more than 73,000 pages long, the US tax code is plagued with inefficiencies and loopholes that are undermining our global competitiveness. It doesn't bring in enough revenue to fund our current investments like education, infrastructure, and Social Security, and doesn't take into account future planning. Leaping 'LOOPHOLES 2013 Loopholes by the numbers $161 $248 $137 BILLION BILLION BILLION EMPLOYER-SPONSORED HEALTH INSURANCE PREFERENTIAL TAX RATES ON NET PENSION CONTRIBUTIONS CAPITAL GAINS & DIVIDENDS & EARNINGS Just ten accounted for more than $900 billion in lost revenue in 2013 alone. There are more than 200 distinct loopholes in the individual and corporate tax codes. 2013 LOOPHOLES By the Numbers $1.14 $1.3 $149.5 TRILLION TRILLION FOR INDIVIDUALS BILLION FOR CORPORATIONS TOTAL LOOPHOLES Corporate Tasx: HIGHER RATES LEAD TO MORE HOLES CORPORATE TAX RATE REVENUE COLLECTED AS A % OF GDP 26 Fortune 500 companies paid no federal income tax between 2008 and 2012. 288 Fortune 500 companies paid an average 19.4% in income tax between 2008-2012. 35% 24.5% 2.3% Corporate tax's share of U.S. government revenue has consistently fallen since the 1950s. In 1952, corporate taxes accounted for 32,1% of all federal tax revenue. By 2012, they accounted for 9.9%. U.S. AVERAGE U.S. AVERAGE 5% is far above The U.S. corporate tax rate of 24.5% average of developed countries. But the U.S. only collects 2.3% of GDP in corporate tax revenue- 32.1 9.9% 1952 2012 far below the developed country average of 3.0%. WHO GETS THE TAX BREAKS? 2013 TAX REVENUE Vs. 17% 50% GOVERNMENT EXPENSES Revenues: $2.7 trillion 17% of individual tax breaks go the top 1% of households. 43% of 50% of tax breaks went to the top fifth of households, while just 8% went to the bottom fifth. Americans paid Expenses: no federal $3.4 trillion income tax. WHO PAYS O HOW MUCH? WHERE DOES THE MONEY COME FROM? (Percentages represent share of total federal taxes) 69.3* 3.0% 5.5% Other Excise 9.9% Corporate Income 18.4% 9.2% 47.4% Individual Income .05% 2.8% 34.2% Lowest Second Middle Fourth Highest Fifth Fifth Fifth Fifth Fifth Social Insurance (by income) Reforming our tax code is essential for future economic growth. It needs to be simplified by closing loopholes and bringing corporate tax rates in line with other developed nations. A simpler tax code will lead to more opportunities for investment and social programs, which will create a better future for all of us. STAY INFORMED www.thecankicksback.org/taxes. SOURCES http://finance.townhall.com/columnists/politicalcalculations/2014/04/13/2 014-how-many-pages-in-the-us-tax-code-n1823832 Tax Policy Center, Tax Facts, 2013, http://www.taxpolicycenter.org/UploadedPDF/1001697-TN-who-pays-no-fe deral-income-tax-2013.pdf Congressional Research Service, The Corporate Income Tax System: Overview and Options for Reform, February 14, 2014, http://fas.org/sgp/crs/misc/R42726.pdf Congressional Budget Office, The Distribution of Major Tax Expenditures in the Individual Income Tax System, May 2013, http://www.cbo.gov/sites/default/files/cbofiles/attachments/43768 Distri bution TaxExpenditures.pdf Congressional Budget Office, "The Budget and Economic Outlook 2014-2024", February 2014, http://www.cbo.gov/sites/default/files/cbofiles/attachments/45010-Outlo ok2014_Feb.pdf Citizens for Tax Justice, The Sorry State of Corporate Taxes, Accessed August 2014, http://ctj.org/corporatetaxdodgers/sorrystateofcorptaxesES.pdf Office of Management and Budget, Table 2.2, Accessed August 2014, http://www.whitehouse.gov/sites/default/files/omb/budget/fy2015/assets /hist02z2.xls http://wallstcheatsheet.com/business/the-government-is-giving-way-too- much-money-to-the-wrong-people.html/?a=viewall Congressional Budget Office, The Distribution of Household Income and Federal Taxes, 2010, http://cbo.gov/sites/default/files/cbofiles/attachments/44604-AverageTax