Paying taxes is not about "fairness," for everyone will define "fair" to their own advantage. It's about getting enough money to run the country. It's
also about running the economy to the best advantage. That means, letting people keep more of their money, which creates jobs.
Oh, yes. I can hear it now. "The rich don't create jobs," they just keep their money to themselves.
Wrong. Any money they they have is either spent or kept. If it is kept it is invested. If it is invested, it either goes to companies in the form of
stocks or bonds or to banks for CD's. In either case, that money is available for others to expand businessses. If it is spent, the same rule applies.
The company that sells the widgets expands. The whole idea here is to grow the economy so that even YOU (yes, you) can get a job. And if you can get a
job you can learn enough to get a better job. And if you actually pay attention, you can own the job. Just as one example, 50% of McDonald's
franchisee owners started out slinging fries. That's right. they started out at a minimum wage McJob and wound up owning the place.
The problem in this country is that half of us are on some sort of welfare. The takers are about to outnumber the makers, and when that happens, when
the takers vote in policies that allow them to take more, there will be no more makers, so we'll all be equally poor. Look at Great Britain for a good
Here's how it breaks out, directly from the IRS, 2010 (Oh, I know, they must be lying about this.)
100%: 139,960,580 returns paid taxes of $1,031,512mil for 100% AGI for 100% of taxes
Top 1%: 1,399,606 returns paid $392,149mil for 20.70% AGI for 38.02% of taxes
Top 5%: 6,998,029 returns paid $213,569mil for 34.73% AGI for 58.72% share
Top 10%: 13,996,068 returns paid $721,421mil for 45.77% AGI for 69.94% of taxes
Top 25%: 34,990,145 returns paid $890,614mil for 67.38% AGI for 86.34% of taxes
Top 50%: 69,980,290 returns paid $1,003,639mil for 87.25% AGI for 97.30% of taxes
Bottom 50%: 69,980,290 returns paid $27,783 mil for 12.75% AGI for 2.59% of taxes.
AGI = Adjusted Gross Income. So to put this in story problem form:
The top 1% earned 20.70% of the income, but paid 38.02% of all income taxes.
The top 5% earned 34.73% of the income, but paid 58.72% of all income taxes.
The top 10% earned 45.77% of the income, but paid 69.94% of all income taxes.
The top 25% earned 67.38% of the income, but paid 86.34% of all income taxes.
The top 50% earned 87.25% of the income, but paid 97.30% of all income taxes.
The bottom 50% earned 12.75% of the income, but paid 2.59% of all income taxes
Now let’s put that in perspective.
The top 1% means your adjusted gross income is at or above $380,354.
The top 5% means your adjusted gross income is at or above $159,619.
The top 10% means your adjusted gross income is at or above $113,799.
The top 25% means your adjusted gross income is at or above $67,280.
The top 50% means your adjusted gross income is at or above $33,048.
The bottom 50% means your adjusted gross income is below $33,048.
edit on 2/21/2012 by schuyler because: (no reason given)