posted on Nov, 7 2008 @ 01:11 PM
This is completely incorrect...and out of context.
First off, the examples listed infer that the rich are paying 60 percent of their "individual" income taxes. This is not true; they are paying 35%,
which is the highest of all of the 6 tax brackets that currently exist. Now even that 35% is rarely paid by the wealthiest persons, the rich can take
advantage of tax loopholes, including one that allows them to pay the capital gains tax rate of 15 percent instead of the ordinary top income tax rate
of 35 percent.
Recently Warren Buffett (the third-richest person in the world) cited himself as an example. Last year, Buffett said, he was taxed at 17.7 percent on
his taxable income of more than $46 million. His receptionist was taxed at about 30 percent. Buffett said that was despite the fact that he was not
even trying to avoid paying higher taxes. "I don't have a tax shelter," he said.
Now lets talk about context, the 60 percent paid by the wealthiest man outlined in the horrific example, is to depict the total amount of income tax
revenue received. Therefore, stating that the Top 5 percentile of wealthy Americans in this country make up 60 percent of the entire income tax
revenue received. The top 5 percent own 60 percent of all wealth. So, now that you can see that the Top 5% owns 60 percent of our nation's wealth,
you should also understand why they also make up 60 percent of the yearly income tax revenue
Also, the top 20 percent owns over 80 percent of all wealth. In 1998, it owned 83 percent of all wealth.
Finally, if you tax someone making $40,000 a year 25% you take $10,000 dollars from them leaving them with a windfall of 30,000 dollars.
But if you tax Warren Buffet, making $46,000,000 a year, 35% you take $16,100,000 dollars, leaving him in poverty at 29,900,000 dollars. And as I said
earlier, with the tax breaks and loopholes they see, they end up paying only 17% compared to the 25% the 40k a year is taxed. And good luck going to a
non-third world country, offering a different system or at a lesser rate; England is taxing their rich higher at 40%, China at 45%, Canada is the
lowest at 29%, but they don't even tax those making less than $9,000 a year, period. Don’t accept these “jokes” at face value, do your