5 Things Your Tax Guy Didn’t Tell You
This is a cross-post from AFSCME.
Tax season is upon us. Whether you use an online filing service or a certified public accountant or your mom still helps you fill out your taxes, here are five things you probably won’t learn from your 1040.
1. The ultra-wealthy still aren’t paying their fair share.
The Internal Revenue Service (IRS) tracks 400 highest-paid filers each year. In 2009, those taxpayers made an average of $202 million and their average federal income tax rate was 19.9 percent. Meanwhile, the middle 20 percent paid a few percentage points fewer at 16 percent, while making just $46,000 a year. At the state and local level, the poorest Americans are subject to a tax rate that is twice as high as the tax rate paid by the wealthiest earners.
2. Corporations aren’t paying their fair share either.
According to a report from Citizens for Tax Justice, between 2008 and 2010, 30 of the wealthiest corporations averaged a less-than-zero tax bill. As in, they got money back. Additionally, the 280 most-profitable companies received nearly $224 billion in tax subsidies.
3. Union members are paying their fair share and, luckily, union dues are tax-deductible.
According to the IRS website, you can deduct dues and initiation fees you pay for union membership. “You can also deduct assessments for benefit payments to unemployed union members,” the site says. But you can’t deduct contributions to your pension fund or any political contributions.
4. Some working people are paying taxes without getting the benefits.
A study by the Institute on Taxation and Economic Policy found that in 2010 alone, undocumented immigrants paid $11.2 billion in state and local taxes. However, immigrants—even those here legally—are barred from most social services. So, they pay taxes to support benefits they cannot receive. Another reason we need comprehensive immigration reform.
5. Your taxes fund public services.
The taxes you pay keep your communities safe, strong and healthy. So, make sure to get them in before April 15, and sign on the dotted line—or virtual line—with pride. Your taxes make America happen.
Visit www.IPaidMyTaxes.org to spread the Tax Day love.


