Posted on 01/17/2002 3:19:11 AM PST by RedBloodedAmerican
Since the deadline for filing our year 2000 income tax returns has just passed, we feel that it might be appropriate to discuss who is actually paying the lion’s share of the income tax load levied by our federal government.
Current assumption
One of the major criticisms of President George W. Bush’s across-the-board tax cut proposal is that the cut gives too much of a tax break to the wealthiest Americans. In fact, this point seems to be the major focal point addressed by the current national news media with respect to the proposed tax cut. However, over the past three decades, whenever a tax cut has been proposed, politicians whose desire was to expand federal social and entitlement programs and maintain "big" federal government have historically jumped on the band wagon rhetoric of tax cuts for the wealthy, at the expense of the average wage earner. Therefore, the latest media blitz that proclaims and decries the unfair proposed tax cut that favors and gives advantages to the wealthy should be viewed as a typical media response rather than the exception. Nevertheless, it is a response grounded more on political maneuvering rather than on a foundation of fact.
Foundational data
According to the reporting data banks of the Internal Revenue Service (IRS), the top 1 percent of wage earners in America—those who gross more than $269,000 annually—pay almost 35 percent of the income taxes paid in America annually. So, the simple reason why an across-the-board tax cut would benefit the wealthiest Americas is because they pay a larger percentage of America’s income taxes. This is fair.
Continuing, the top 5 percent of wage earners in America—whose annual gross earnings exceed $115,000—pay 54 percent of all income taxes collected annually. The top 10 percent of wage earners—those whose annual gross income is over $83,000—pay 65 percent of all income taxes collected in America annually (even though they make only 43 percent of America’s gross annual income). So, according to the official records of the IRS, the wealthiest taxpayers (the top 10 percent) are paying almost two-thirds of the taxes, leaving the remaining 90 percent of America’s taxpayers to pay the remaining one-third of the taxes. So, who is in fact being unfairly taxed?
America’s income tax system
The federal income tax system in America is designed to force the wealthiest to pay the most. Therefore, unless a tax cut was designed that specifically excludes the wealthy, they most likely will get the most significant share of the benefits when taxes are reduced. These are the ones who are paying most of the tax bill, so they should get most of the tax benefits. Nevertheless, even if Congress does pass an across-the-board tax cut, with our current income tax structure, this 10 percent will continue to pay about two-thirds of America’s income tax burden.
Taxes are necessary for the support of the government. And the Bible makes it perfectly clear that we must pay the taxes that we owe. But, is the current graduated income tax the best way to pay those taxes?
When America’s founding fathers wrote the Constitution, it specifically prohibited the use of an income tax, citing that such a tax, by its very nature, would be subject to political abuse and class distinction tax abuse. A national sales tax would seem to be fairer and less abusive. However, since 1913, America has been subjected to the unfair system of a graduated income tax. So, like it or not, we seem to be stuck with this system, and in all likelihood it will be the federal government’s tax system choice for years to come.
Conclusion
Because we have little choice in the matter in that according to God’s Word we are obliged to pay taxes that are due, we must continue to file our income tax returns and continue to pay taxes based on the IRS’s graduated tax schedule. Nonetheless, there is nothing wrong with trying to make the current system a bit less burdensome by encouraging our local and state Congressional and Senate representatives to vote in favor of an across-the-board tax cut. Those who pay more will receive a larger tax advantage and those who pay less will receive a smaller advantage. This seems to be as close to fair as this current tax system will permit.
People with incomes $100,000 to 200,000 pay 24.1% of the taxes, $213 Billion.
People with incomes $75,000 to 100,000 pay 12.8% of the taxes, $113 Billion.
People with incomes 50,000 to 75,000 pay 12.9% of the taxes $114 Billion.
People with incomes of $40,000 to 50,000 pay 4.4% of the taxes, or $39 Billion, and
people with incomes of$30,000 to 40,000 pay only 3.4% of the taxes, or $30 Billion!
Finally, people with incomes of only $20,000 to 30,000 pay only 1.1% of the taxes, or $10 Billion!
More info: the TOP 1% of income earners pay 33.6% of all the taxes!
Great post. It's too bad the libs don't want to, or cannot, understand this.
They don't. They want special rights for special groups. They could care less about equal. It is equal, or at least less than fair as it is. They do not want it fair or equal. They want Communism.
Under communism everyone was equal, except for a small ruling class. What will happen to all the Libs in America under such a system? No room for all of them in the 'new ruling class'. Must be the big lie that the Lib leaders don’t want to talk about.
Which only further highlights the utter stupidity of the rank-and-file liberals. They are on the bandwagon, in for a penny, in for a pound, waving and shouting ... and have no idea what they're rooting for.
Don't cry to me, they're gonna get it somewhere.
The bill may be obtained here (enter "hr2525" in "Bill Number" and in the resulting window click on "Full Display"), and to see the websites, click here, and here here, and here.
Such a tax system is far, far superior to the existing income tax system both in its benefits to individual taxpayers and the economic stimulus it would give the country.
The real point is we DO have a choice in the matter of taxation if we but educate ourselves a bit and work to eliminate the income tax/IRS combination from our lives while benefitting from the NRST.
Little Willie was "The Worst President In American History".
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