24 September 2011

Demonizing the Rich, II

The Weekly Standard breaks down who pays federal taxes and puts Obama's deceptive "the rich don't pay their fair share" nonsense to rest.

The tables used in the Weekly Standard article were actually obtained from the Tax Policy Center (a Center-Left organization).

Here is the golden nuggest that you need to know:

In 2010, according to the TPC, Americans in the lowest quintile of income-earners — the bottom 20 percent — paid minus-3.8 percent of the total federal income tax burden. In other words, they got more back, in income tax credits and the like, than they paid in. Similarly, those in the second quintile paid minus-4.3 percent of the total federal income tax burden — so they, too, weren’t paying into the income tax till but rather were taking out. 

Those in the middle quintile — pretty much the center of the middle class (this quintile had an average income of $44,000) — paid 3.9 percent of the total federal income tax burden (about $1 of every $25 dollars in income taxes paid nationwide). And those in the fourth quintile — whose income ranged from $58,000 to $102,000 — paid 15.1 percent of the total federal income tax burden. 

So, all told, the 80 percent of Americans whose income placed them in one of these first four quintiles of income-earners combined to pay 10.9 percent of the total federal income tax burden. Put otherwise, this 80 percent of the citizenry paid about $1 out of every $9 that was paid in federal income taxes nationwide.

Meanwhile, Americans in the highest 0.1 percent of all income-earners — these are the very rich, with incomes of at least $1.974 million — paid 16.4 percent of the total federal tax burden. Essentially, one out of every $6 paid in federal income tax was paid by this 0.1 percent of the citizenry. 

This article shows clearly that "the rich" already pay their fair share. This president and his warped ideology are intent on stealing your wealth, and are using their propaganda machine to justify it.

USA Today did a fact check on the "Buffet rule" and on who pays taxes in this country.

USA Today found that the top 10% of wage earners in the US pay half of ALL federal taxes. They also pay 70% of federal income taxes.

There is no plutocracy in this country, and it saddens me that so many people just don't take the time to wade through the propaganda and learn the truth. I guess it's just easier to just blame some faceless "millionaires" and claim that they need to do more.

From the USAToday article:

The latest IRS figures are a few years older — and limited to federal income taxes — but show much the same thing. In 2009, taxpayers who made $1 million or more paid on average 24.4% of their income in federal income taxes, according to the IRS.

Those making $100,000 to $125,000 paid on average 9.9% in federal income taxes. Those making $50,000 to $60,000 paid an average of 6.3%.

Obama's claim hinges on the fact that, for high-income families and individuals, investment income is often taxed at a lower rate than wages. The top tax rate for dividends and capital gains is 15%. The top marginal tax rate for wages is 35%, though that is reserved for taxable income above $379,150.

I wonder when the poor are going to put "some skin in the game"? The bottom 80% already drain almost 4% from the federal coffers. And that doesn't include state, county and municipal entities.

The Left, and progressives in general, love to point to the "income disparity" in our society as "evidence" that there is discrimination in the work place and labor markets. It's unadulterated balderdash.

"Income disparity" is not a cause, it's a symptom. It's like saying everyone in your math class didn't get an A on the midterm so the test must be skewed. It is! It is skewed to show who is good at math, and those that aren't.

Income disparity is different for all because we're all NOT the same! You have people with different intelligence, experience, education, motivation and geography that will push them into a certain field, and OF COURSE, there will be income disparities. It's a Straw Man in every aspect.

But don't tell the Left. They will use any show pony to try to justify the installation of Marx's 10-planks of his manifesto.

The Heritage foundation did a nice job destructing the income inequality boondoggle here.

People like Coldtype and Leftisthebest have not, and will not, open their minds to such intellects as FA Hayek or Milton Friedman.

And Friedman is exactly right in this discussion on greed, capitalism and private property.

Robert E. Lucas, a notable 'Chicago school' of economics wonk speaks on why welfare doesn't work in this article at the WSJ.

For the best explanation of what happened in Europe and Japan, he points to research by fellow Nobelist Ed Prescott. In Europe, governments typically commandeer 50% of GDP. The burden to pay for all this largess falls on workers in the form of high marginal tax rates, and in particular on married women who might otherwise think of going to work as second earners in their households. "The welfare state is so expensive, it just breaks the link between work effort and what you get out of it, your living standard," says Mr. Lucas. "And it's really hurting them."


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