Tax Figures

The rich have to pay their fair share! This is the favorite line from the Libs and the Progs who will have you believe that the rich are evil, greedy people who do not earn their wealth but have acquired it through shady means. Not only that, but the rich keep getting richer while the poor keep getting poorer. That’s another favorite prog line. Unfortunately for the wealth envy crowd, this is simply not the case. Although, the class warfare warriors know that they can get away with this tact because most people are too ignorant to know what the truth really is, or research it for themselves. People buy into the wealth envy rhetoric because it makes them feel better about their life choices … for many it justifies their moocher existence.

And just what is the truth? Well, it turns out that the rich are paying nine times as much as the poor when you take income into account. Another great article from the American Thinker has the numbers – Deconstructing the Left’s Argument for Increasing Tax Rates on the Rich:

Let’s examine the numbers a little more closely, looking at the tax share relative to income share for the two groups between 1980 and 2008. The share of income tax paid by the rich in proportion to the share of their total income went from 2.25 to 1.9 between 1980 and 2008, while the same ratio for the poor went from .40 to .21. The effective tax burden (tax share in relation to income share) was 5.62 times higher for the rich than for the poor in 1980 and 9.0 times higher in 2008. Thus, the relative tax burden on the rich — relative to income — compared to the poor nearly doubled from 1980 to 2008 — from 5.62 to 9.0.
The sad fact here is that it is going to take something more than a basic government school education to understand what you’ve just read. This means that those numbers are lost on the vast majority of Americans, and pretty much all of the people who love to prance around demanding that their politicians make the rich pay “their fair share.” We can’t tax the producers into prosperity.

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The Revolving Rich

The Libs and the Progs would love you to believe that there is a set group of evil, filthy, disgusting evil rich people – the perfect target for demonization. But the fact is that being “rich” is mobile, and this should be a good thing! In ObamaWorld its OK for Americans to aspire to be wealthy so long as they earn their wealth in a manner approved by liberals. Non-approved methods of creating wealth are, to liberals, based purely on greed. But while these evil rich people make a great target for wealth envy on the campaign trail, here are some statistics you may find interesting …

Every year, the IRS publishes data on the highest-paid 400 taxpayers . This year’s report shows that the average incomes of the top 400 fell by 21.5%, to $271 million from $345 million the year before. Their share of national income also fell, to 1.31% from 1.59%. As Roberton Williams, a senior fellow at the nonpartisan Tax Policy Center, wrote in Tax Vox, the majority of the drop was from a decline in capital gains …

But the study showed that this is not a constant group, but rather a revolving door of riches. Since the list began in 1994, only 27% have made the list more than one year. Only four people have made it every year.

That means that about three quarters of the Fortunate 400 are one-time wonders — most of whom probably made it into the group by selling a business …

Williams has also studied churn among the top 1%, or those with income of more than $380,000 in 2008. He found that half of the group over a 10 year period made the cut only once.

You’ve heard that the rich keep getting richer, right? Well the truth here is that year after year some of the rich get richer, and some get poorer while the poor move in to take their place on the rolls of the rich. It’s called income mobility, and it’s a facet of the American free enterprise economy that liberals simply don’t want you to understand.

Another tax the rich idea

Democrats just won’t give up on this; especially during an election year. They know that people who might easily be talked into voting Democrat are, economically ignorant. The newest idea? A 3% surtax on all earned incomes higher than $1,000,000 per year.

There are about 139,960,580 tax payers with positive AGI in 2010. Only 0.2% of taxpayers earn a million dollars or more, meaning that there about 279,921 households will be target with this wonderful new bash-the-rich surtax. Let’s assume that all of these households earn pretty much around the $1 million mark (because let’s face it, there are a lot more people earning close to a million than close to a billion). With a 3% surtax on $1 million, that comes out to $30,000 for every household — assuming they earn $1 million – and that’s not considering any tax breaks that might get in the way. Multiply the number of households earning a million (279,921) by the surtax ($30,000) and you get 8,397,630,000 … so about $8 billion. How fast do we spend money does our bloated federal government spend in a day? Try $3.7 trillion dollars. That turns out to be about $10 billion per day, and that means that the wonderful 3% surtax on the evil rich would bring in enough money to operate our government until just about dinner time on only one day.

Let’s really give the left a wet dream … let’s just tax all AGI above $1,000,000 at 100%. After all, nobody really “needs” more than a million a year, right? And after all, with the Dear Ruler in office, it’s all about from each according to their ability and to each according to their need. So let’s just take it all. And just how long would that run our government? About three days.

You should also consider the fact that many taxpayers will magically change their earning habits to bring that total under $1 million in order to escape the extra tax. But this isn’t about funding government … this is about stirring up class envy and trying to convince the dumb masses that what were facing is not a spending problem .. it’s simply a taxing problem, and all we have to do is get the evil rich to “pay their fair share” and everything will just be fine.

What if we just taxed the billionaires …. Not just taxed them but took away everything that they earned and made them sell all of their assets? From Investors Business Daily:

According to the Forbes 400, America has 400 billionaires with a combined net worth of $1.3 trillion. Congress could confiscate their stocks and bonds, and force them to sell their businesses, yachts, airplanes, mansions and jewelry. The problem is that after fleecing the rich of their income and net worth, and the Fortune 500 corporations of their profits, it would only get us to mid-August.

Also consider that the top 1% of taxpayers earned $1.6 trillion in 2010. These are households earning over $380,000 a year. Even if we took all of their wealth earned in 2010, we would be unable to fund our government for one year, as we will spend $3.7 trillion.