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Who is paying Federal Income taxes - Updated:
Bottom Line: Our progressive tax code is already on the slippery slope to Socialism. The President made it clear that he will only approve a tax plan that includes tax increases for the “wealthy” (Those making $200,000 or more or households earning $250,000 or more). He also has made it clear he wants tax increases on investment (capitol gains and dividends). So let’s take a look at who actually pays Federal Income tax (updated with the latest info):
Top 1%: 38%
Top 5%: 59%
Top 10%: 70%
And yes just over 46% of the country pays no net Federal Income tax. So the first question is what’s fair? Certainly 1% of the population paying the freight for 38% of the country isn’t fair right? Yet the President and those who think like him think it’s still not enough. Nearly half of the country pays nothing for their Federal services & that’s acceptable? Worse still those who don’t pay any effective Federal taxes have figured out they can vote themselves the money of those who already are paying Federal Income tax (while 46% of the country pays no effective income tax – 40% actually profit – yes profit off of the Federal Income tax system through tax credits and benefits).
Here is the bigger problem. If you increase taxes further on investment and income of those who invest the most this happens…
- Less money is available to invest leading to less business formation
- Less business formation means slow or no job growth
- Less job growth leads to higher unemployment
- Higher unemployment leads to more people on programs
- More people on programs leads to higher deficit spending
- Higher deficit spending leads to higher taxes…
There is also this piece of the puzzle… With investment leaving existing companies (just look at the stock market since the election) this will happen to those already in the workforce:
- Companies not having investment capitol to expand
- Existing employees lacking upward mobility because of a lack of growth
- Salaries stagnating or falling because of a lack of investment and growth which fixed costs (raw materials, energy, healthcare,etc.) rise
Get it? That is what happens on the path to a Socialist society. This is the very scenario playing out in
Guess what… At our current pace we’ll end up exactly where
If you raise taxes on the wealthier people as is currently being suggested everyone will suffer. Poor people don’t issue paychecks. People with money to invest in business do.
The people hurt the most won’t be those who are being taxed at higher rates. It will be those in the middle-class. You don’t have to agree with me politically. You don’t have to like me but know this. If President Obama has it his way with tax increases – you will suffer as a result. Every American will. It’s simple economic reality. And if you have investments as 70% of Americans do. You’re already being hurt by the threat of these policies.
http://www.investopedia.com/financial-edge/0811/taxes-who-pays-and-how-much.aspx#axzz2CHXhSi5k
