All Mississippians Pay Taxes
October 11th, 2012
Over the last few weeks, considerable attention has been paid by the media to the subject of who doesn’t pay federal income taxes. Upon close examination, one sees that the majority of this group pays taxes of some type.
Over half of the Mississippians who don’t pay federal income taxes are workers who don’t earn enough to owe federal income taxes, but whom contribute a portion of their income in payroll taxes. Another 27% of those individuals are either elderly or disabled.
Finally, 3.6% are students. Only 11% of the people who don’t pay federal income taxes are not working and may be unemployed and looking for work.
What is rarely considered is that just because someone doesn’t pay federal income taxes, doesn’t mean they don’t pay taxes. They may pay sales taxes on groceries, taxes on gasoline, payroll taxes, property taxes, or state income taxes. A standard family of four with two children starts paying state income taxes in Mississippi on any income they earn over$19,600. That’s lower than the poverty level.
The reality is that most adults in Mississippi both contribute to and benefit from vital public services like education, public safety and public health programs.