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Other articles in Part 2 The best and worst of times Why are some people unable to earn a living Poverty research Education plays key role in poverty Minimum wage fails to keep up Graph: Full- time minimum wage falls below poverty line

Do the poor pay taxes? Many believe the poor are a drain on taxpayers. But in fact, the working poor in Oregon pay more of their income in taxes than the richest Oregonians, according to the Oregon Center for Public Policy. A 1996 study found that families in the lowest fifth of the income range paid 10.8 percent of their incomes in state and local taxes compared to families in the top 1 percent, who paid 7 percent in those taxes. Half the income-taxing states, including Oregon, levy tax on incomes below the poverty line. In 1997, when the poverty line was $16,405 a year for a two-parent family of four, Oregon income tax liability started at $14,000. At that level of taxable income, the family owed $240 in state income tax. The working parent(s) also paid federal Social Security tax and state unemployment tax. If they drove a car, they paid federal and state gasoline taxes. If they smoked tobacco or drank alcohol, they paid federal and state tax on those purchases. Thanks to the federal Earned Income Tax Credit, the family owed no federal income tax for the year and instead received a tax credit of almost $3,000.   Article 6 of 7 in Part 2   back to top

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