[sanddrareyk]

The data point that about 46% of Americans don't pay income taxes is accurate based on the reality that those same people don't make enough money to generate an income tax liability. The tax and entitlement systems were not designed with that scenario in mind.

At the other end of the spectrum, we have companies going through extensive financial acrobatics to take advantage of provisions in the tax code that, combined with nuances in the tax codes of foreign countries, allow them to funnel massive amounts of income to what ultimately end up being a couple of lawyers in Bermuda or a PO Box in the Caymans simply to avoid paying taxes on money that by all accounts should be taxed in the US because it was earned in the US (meet Google's Double Irish and Dutch Sandwich tax-avoidance strategy).

The long-term solution at the low end is ultimately more and better-paying jobs, which starts with a larger investment in education and tax and health care reform policies that incentivize entrepreneurialism rather than career nesting. If people could access low-cost health care separate from employer-based policies, many would indeed migrate to new ventures, both as owners and as employees. The solution at the high end is a sensible corporate tax rate to remove the incentive to create these diversionary funnels and more aggressive policy and enforcement to facilitate retention of domestic earnings.