bjhcpa

A new study by the Tax Foundation casts some light on the absurdities of the concept of "wealthy." During the fight over President Bush's tax plan last year, Democrats, you may remember, harangued the president as a man too sympathetic to the wealthy. As it turns out, wealthy is a fairly relative term, and the reason why the wealthy get the brunt of most Republican-sponsored tax breaks is because — get ready for this — the wealthy pay the brunt of the taxes.

In 1999, the richest 1 percent of Americans took in 19.5 percent of the income. But they paid 36.2 percent of the taxes. The figures are similar for the top 5 percent, who made 34 percent of the money but paid 55 percent of the taxes. So much for rich people escaping taxes with sneaky loopholes, sleazy accountants and offshore shelters.

Want to bust more stereotypes? The income cutoff for the richest 5 percent is just over $120,000. In a good-sized city, a college graduate in his late twenties could probably expect to make about $60,000 per year. If two people making this much money get married, they'd find themselves in the top 5 percent of income earners — the filthy rich. These aren't trust fund babies. They’re Gen-Xers from the suburbs with a bachelor's degree.

The top 25 percent of income earners (and this would include those same two Gen-Xers if they didn't get married) pay a whopping 83.5 percent of U.S. taxes. In contrast, the bottom half of income earners — that's 50 percent of all taxpayers — bear just 4 percent of the tax burden, while earning 13 percent of the income.

Anyway you slice it, rich Americans are paying far more than their share.

So when Democrats say that the latest Republican tax cut "only benefits the wealthy," we need to do two things. First, we need to remember just who the wealthy really are. Wealthy no longer necessarily means the aristocratic Louis Winthorpe III, Dan Akroyd’s riches-to-rags blueblood in Trading Places. Today, wealthy, as defined by the IRS, probably means the 28-year-old public relations account executive sitting next to you on the subway.

Second, we need to employ a little logic. If the richest Americans are bearing a huge chunk of the tax burden, then any sizable tax cut will, necessarily, disproportionately benefit the richest Americans.

Opponents of tax cuts also usually include the poorest Americans in their figures, who pay no income taxes at all. A tax break for someone who pays no taxes is in some places called free money.

Another nasty figure from Tax Foundation study shows that the tax gap is growing. The richest 1 percent paid just 19 percent of the total tax burden in 1980. As noted above, they now pay 36 percent.

This is cause for concern. When 50 percent of Americans pay just 4 percent of the taxes, what sort of tax policies do you think they’re going to endorse on Election Day? Egged on by Democrat demagoguery, the tax burden will likely continue to shift to the upper brackets, which will create even bigger gaps. It’s possible that, in the words of Sen. Barbara Milkulski, we’ll keep "going and getting it from those who’ve got it" until we drive our economy straight into the ground.

This is the sort of majority tyranny factionalism our more thoughtful founding fathers feared. In summarizing the argument of those concerned with factions, James Madison wrote in Federalist No. 10, "... measures are too often decided, not according to the rules of justice and the fights of the minor party, but by the superior force of an interested and overbearing majority."

For now, the majority’s interest is partially offset by the fact that wealthier people are more likely to vote. But as both parties fight for the loyalty of the middle class with tax credits, the tax burden will continue to climb the income ladder.

At the same time, politicians are wooing other loyalties with promises of more government services. Someone has to pay for all this. Increasingly, those people are our society’s most wealthy. And every dollar they pay in taxes is a dollar less they invest in job and wealth creation. It hurts them now. It’ll hurt all of us later.



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[ This Message was edited by: bjhcpa on 2004-08-11 02:14 ]

engfant

You are not correct sir. You have to remember the people paying 36% tax are making MORE THAN ENOUGH for a 3RD WORLD COUNTRY to survive nevermind him/herself.

"Opponents of tax cuts also usually include the poorest Americans in their figures, who pay no income taxes at all. A tax break for someone who pays no taxes is in some places called free money. "

This is the most IGNORANT UNEDUCATED thinking I've read so far. POOR. These people are POOR, meaning they HAVE NO MONEY. So these people should be happy they are STUCK IN POVERTY? Oh man, they are saving like a couple hundred a year maybe??? That's crazy free money. We should all just live on the streets so we can SCREW THE MAN.
Just like some scumbag that's never been at the bottom and never think they'll EVER see it.

If the cost of living is $50K/yrear and you only make $15K that's a problem. If you make $100million, you get to justify your HUGE wealth by saying you pay the most taxes. BOOO HOOO tramp. I only got 74million left after taxes. WHAT A GYP!!!!! I'll be sure to send over the FREE MONEY I've been saving to those poor neglected CEOs that conveniently TANK a stock after they sell theirs off.

Hmmm wonder how the people became poor to begin with? Not all can be crack heads.

BP

bjhcpa -- your facts speak the truth.

I would also like to see more tax breaks for small business owners. The same economic concept applies: If business is healthy it will expand production creating more jobs supplying, building and distributing. The jobs created will create more expendable income to purchase more and more and more products. The increase in income will also generate more taxes for government programs and reduce the need for govt. assistance.

Low income people need incentive and opportunity to pull themselves up not handouts/entitlements. Handouts just trap people in poverty.

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[ This Message was edited by: BP on 2004-08-11 17:56 ]

phlash58

So I wonder what the most wealthy person to ever run as president pays in taxes? Bet Mr. Kerry and his oh so lovely wife enjoy their 5 mansions while some homeless person can't even scrape up enough to eat. Bet we don't see any tax cuts that will help him IF he gets elected... what a Joke. John FNN Kerry was born with a silver spoon in his mouth, then marries, now he has 2 silver spoons. He talks out of both sides of his mouth... Now he can even be fed on both sides.

engfant

ENRON FOOLS. ENRON. Bush should be REMOVED just for his envolvment with Enron. Oh yeah I forgot, if it doesn't DIRECTLY PUNCH YOU IN THE FACE you could care less.

Abortion? **** I ain't getting one (and if I'm rich enough I can get one anyway) so lets vote against it.
I'm not ***, so let's take away the rights of *** people cause the BIBLE says it's wrong.
I'm not a jew, so who cares if only the catholics get ANY federal funding.
No need for stem cell research. No one in my family will benefit from it so OVBIOUSLY no one will either.
Don't need to be heald accountable for any actions with ENRON and his other companies that he's caused to TANK. His daddy will bail him out.

Sounds like a pretty well structured man. OR A SELFISH SCUMBAG THAT CLEANS HIS GLASSES ON A WOMAN'S DRESS and COULD CARE LESS ABOUT ANYONE that is not DIRECTLY involved with him.

Go upto the next FEMALE customer you have, grab her clothes and clean your lenses with it. I bet you get SUED.
Not GOOD OL BUSH.

tanfixr

Quote:If you make $100million, you get to justify your HUGE wealth ...

That pretty much sums up the intellectual mindset of the demoacratic party - the mere concept of needing to "justify" one's wealth is a minefield of anti-capitalist disfunctional reasoning.

engfant

It is? The country is going BANKRUPT. HUGE companies are going BANKRUPT. MILLIONS are out of work, yet the CEOs of these companies (country) are still taking in millions. How is this? If my tanning salon went under, so would I.
All day long we are telling fools to NOT TAKE A PAYCHECK for the first few years of their salon as you'll mostlikely eat through all your working capital.

Guess that doesn't apply when you are rich enough.

engfant

It's too bad that the Republicans have such BAD representation that they have to WORK so hard to make this IDIOT look like there is some sanity or THOUGHT PROCESS in his decision makeing.

electricparadise

Bj ,will get back to you on this ,Need to do some research . So I won't be dissan you yet

aflac

Good post BJ, Hey Engfant, get a life. Just couldn't help replying when I got in here and read some of this stuff. Thanks