Who pays taxes?
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I am poor. I make less than thirty thousand dollars annually. I grew up poor. There were times in my childhood when my parents had to take assistance from the government. Coming from this background gives me a unique perspective when talking about taxing the rich. Simply put the rich pay a significantly larger portion of their yearly income to the federal government. I am not stating this from the standpoint of a person bias. I am stating from the standpoint of fact and research. Below is a link to a table that breaks down the tax burden.
http://www.taxfoundation.org/blog/show/341.html
Tax Foundation.org, author Andrew Chamberlain
I keep hearing the left talking point that the top one percent makes the most amount of the annual income. 16.5 percent is not the largest amount of income. The top five percent makes about 31 percent of the income and pays 54.1 percent of income taxes. The top fifty percent of wage earners makes 86.1 percent of the income, and pays 96.4 percent of the income taxes. This disproves the myth that the rich don’t pay taxes. In fact, the top fifty percent pay almost all the income taxes. The leftist are lying! Furthermore, the bottom 50% makes 13.9 percent of income and pays only 3.6 percent of income taxes. 13.9 % may not seem like much, for the bottom 50%, but that’s still more than a 2 trillion dollar share of the more than 14 Trillion dollar GDP. That means that 150 million people divide up 2 Trillion dollars. Thats a lot of money per capita!
The taxes paid each year don't show the whole picture. What about government spending? Taxes wouldn't mean much if the government spent that money on the rich.In a special report by the Tax Foundation statistics show how the taxes are spent. The data clearly, shows that for the bottom 20 percent of tax payers the United States government spends $8.21 dollars for every dollar of taxes paid. Whereas for the top 20 percent, the government spends $0.41 dollars on every dollar of taxes paid (Tax Foundation March, 2007 No. 155). Given the discrepancy between the amount of taxes paid by the top 20 percent of tax payers and the amount that is spent by the government on the lower 20 percent, the margin between the taxes for the top earners in America and the bottom earners is further expanded.
I point out these facts for a simple reason. The democrats are always saying that the rich don’t pay their fair share. So what is their fair share? As it is the top 20 percent of wage earners pay nearly fifty percent of their yearly income. Is that fair? Or should their pay more? The rich employ, oh you know, everyone! How many yearly salaries are being sent to Washington to be squandered on ineffective Policies? Instead, that money could be spent on creating jobs in the private sector. Maybe that is why all the socialist countries in Europe are going under. Those countries don’t have much of a private sector. Countries like Spain, Italy, and Greece are going under because their governments are paying for more wages than the governments can afford. As such, the European governments must continually borrow money. Oh, yah, that’s a good idea. The United States now has over 14 TRILLION DOLLARS DEBT! What happens when your debt payments become more than you can pay for in a single year? Answer: Taxes sky rocket. As taxes sky rocket, the economy goes down. That’s why despite spending more than two Trillion dollars since being elected, Obama has failed to turn the economy around. According to tradingeconomics.com, the United States economy hasn’t turned around. From 2008 to 2009 the economy lost more than 6.8 percent. After a brief turn around in which the economy grew by shortly by 5 percent, the economy dropped sharply. Since Obama’s election, the economy has only grown by more than official recession levels of about 4 percent once. Currently, the economy continues to decline.
An excerpt from the national tax journal, June, 2010 states:
In the absence of significant changes in policy, rising costs for health care will cause federal spending to grow much faster than revenues, putting the federal budget on an unsustainable path. Budgetary projections prepared by the Congressional Budget Office indicate that if current laws and policies remain in place, federal debt in the United States will continue to grow much faster than the economy over the long run. Although long-term budget projections are highly uncertain, under any plausible scenario rising costs for health care and the aging of the U.S. population will cause federal spending to increase rapidly.
I’ll have to do an entire blog on Obama care, but for now let’s just say that it will be a tax nightmare.
The democrats are not stupid. They know what the statistics are, they know what the truth is, and yet they continue to do the things that will implode the economy. Anyone of a sound mind must ask why? How will they benefit from taking money out of the hands of the people who create jobs? Many people are speculating about this. I think there must be some power play going on that they think will keep them in power. Perhaps a power play designed to bring about the change that Obama was talking about. Anyone who wants to learn about that, learn about Bill Ayers and the weather underground. I will be doing a blog about them both very soon. Until then, power to the people!
Sources:
Tax Journal
National Tax Journal
