Posted on 10/24/2017 9:20:23 AM PDT by T-Bird45
Not what you've been told.
Politicians exploit public ignorance. Few areas of public ignorance provide as many opportunities for political demagoguery as taxation.
Today some politicians argue that the rich must pay their fair share and label the proposed changes in tax law as tax cuts for the rich. Let’s look at who pays what, with an eye toward attempting to answer this question: Are the rich paying their fair share?
According to the latest IRS data, the payment of income taxes is as follows.
The top 1 percent of income earners, those having an adjusted annual gross income of $480,930 or higher, pay about 39 percent of federal income taxes. That means about 892,000 Americans are stuck with paying 39 percent of all federal taxes.
The top 10 percent of income earners, those having an adjusted gross income over $138,031, pay about 70.6 percent of federal income taxes. About 1.7 million Americans, less than 1 percent of our population, pay 70.6 percent of federal income taxes. Is that fair, or do you think they should pay more?
By the way, earning $500,000 a year doesn’t make one rich. It’s not even yacht money.
(Excerpt) Read more at hermancain.com ...
“An important subject area in economics is called tax incidence. It holds that the entity upon whom a tax is levied does not necessarily bear its full burden. Some of it can be shifted to another party.
If a tax is levied on a corporation, it will have one of four responses or some combination thereof. It will raise the price of its product, lower dividends, cut salaries, or lay off workers. In each case, a flesh-and-blood person bears the tax burden.”
Wish he’d written the whole article on this subject.
Huge ignorance of it.
“They’re not taxing me, they’re taxing the guy I buy from!”
Bookmark
Tax incidence is usually part of first year economics. But it might not be memorable even to those who take the course.
I used to feel that we should lower taxes on the rich rino establishment and their upper class elitist cohorts. But, since both of them are trying to destroy our borders that has completely changed. Until the border is secure and until they stop spending out money as they want and as long as the corporate medias smears us I say no more tax cuts. I am sick and tired of a Conservatism that does not work for conservatives but only for the corporatist.
Walter E. Williams.....he always joked that his wife called him Mr. Williams....this guy is the real deal all around.
Teachable moment always....
God Bless.
The term “rich” really has no meaning, everyone has their opinion. To you & me $500k/yr is a lot but considering some earn in the millions or billions range, along with the yachts and Bugatti Veyron’s they own, it really isn’t.
That said, I’m technically a 10%er, I know people that consider me “rich” yet I’m still far from being able to retire.
“Free shipping! What a deal!”
The media has it’s reasons for squelching the subject I suppose.
A state can “end” sales taxes- by making the retailer pay them instead of the consumer...
Democrats,liberals love to categorize everything by race...EXCEPT taxes and who pays them.......Hmmmm wonder why??????
There should be only one tax rate... Say 10%. Only charitable deductions allowed. Nothing for kids, mortgages, etc. That is the only way to get rid of the evil tax code and treat everyone the same way.
So the top 1% pay 39% of all taxes on AGI. What % of the AGI do those folks earn? WW doesn’t appear to discuss this or did I miss it?
“A state can “end” sales taxes- by making the retailer pay them instead of the consumer...”
There is no way to predict who will end up paying that tax by simply trying to shift it to the retailer. That’s the lesson of Tax Incidence.
Some or all of the tax may be borne by the retailer in the form of lower profit. Some or all of the tax may fall on the consumer in the form of higher prices. If the retailer’s expenses go up and his income goes down he may go out of business. That’s one way tax incidence plays out. Depends upon what his margins are and whether his product is something that customers regard as essential.
Great line!
If 1 million people earn 2 million dollars on average that equals only 2 trillion dollars gross income. At 39% that’s about 800 billion in taxes. If 2 million people earn about 200k per year, that’s about 400 billion in income so about 100 billion in taxes. We’re almost at a trillion, but we bring in 3.5 trillion and borrow a trillion.
Where does the other 2.5 trillion in receipts come from if 1 of the 4 trillion is borrowed and another 1 trillion is from all the 130k incomes and higher?
bkmk
These numbers paint a pretty good picture of why those demanding the rich pay their “fair share” will never put a number on the amount, but rather just keep it vague in order to use it as an annual hammer to pound home a lie and promote envy.
People who make $30K/year think people who make $40K/year are rich. The Left knows this game well.
Yeah, the lack of certainty makes the subject complicated.
All this talk of reducing corp taxes to increase US global sales made a point with me that I’d never imagined. Foreign customers had been paying a significant share of our federal taxes!
Now that other nations have advanced it’s a net loss, but decades ago it was a good idea.
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