...let's have a look at a
graph and figures detailing this "pay no taxes" deal.
The first thing one notices is that sizable chunk of "Paid payroll taxes." That would be what we call "withholding." For the benefit of Mr. Romney: That means that the money is deducted from the paycheck and sent to the IRS by the employer, who then issues the lovely W-2 form showing how much was paid. One then communes with one of the 1040 family of tax return forms to determine the amount actually owed. On occasion money has been over-withheld, and those people are sent the excess as a refund. (Occasionally, money is under-withheld, and these people must send a check covering the amount, but I doubt Mr. Romney counts them because not for the full amount.) This is a system meant to be as painless as possible.
They are still paying Federal (and probably state) tax. They're working and middle class people, and frankly, they've worked harder than Mr. Romney ever will.
Elderly, ie recipients of Social Security, are
not taxed unless they make over an amount determined by law. They've also put many years' worth of earnings into the system. People who make less than a certain amount (in the graph and figures, $20,000, but there's the standard deduction and exemptions to take into account) do not have to pay, although they have to file.
The less-than-1% (funny, that) not otherwise accounted for would seem to include...millionaires.
But it isn’t just low-income households that pay no federal income taxes, Williams said. He estimated that 1,400 millionaires didn’t pay federal income taxes in 2009, with many likely taking advantage of foreign tax credits or charitable donations to lower their tax liability.
In other words, Mr. Romney should have queried his figures before slinging numbers around.