Expect the volume to increase substantially as our leaders 'debate' our financial future. The volume with regard to taxes will be especially loud. It would be nice if our leaders read this article by David Cay Johnston, but we know they won't read anything which may cause them to have second thoughts about their statements and actions. Hopefully, you will read the article after you read my summary.
1. Poor Americans do pay taxes. It is true that many of the truly impoverished do not pay federal income taxes. However, they do pay federal payroll taxes, gas taxes, sales taxes, utility taxes and other taxes.
2. The wealthiest Americans don’t carry the burden. Again, income taxes are not the only federal tax. Payroll taxes (social security, Medicare, unemployment) stop at $106,800 in income, which means that those earning more than that pay a smaller share of their income in payroll taxes.
3. The wealthy are paying less taxes. In 2007 the wealthiest 400 taxpayers paid 16.6% of their income in federal incomes taxes, the average Joe 22.5%
4. Many of the very richest pay no current income taxes at all. Many hedge fund managers can defer their taxes for years.
5. And (surprise!) since Reagan, only the wealthy have gained significant income. Since 1980, the average income of average Joe has increased 1%. Those at the top of the income pyramid have seen their income double in that time.
6. When it comes to corporations, the story is much the same: less taxes, 15.2% in 2000, 12.6% in 2008.
7. Other countries do it better. We need "a tax system that benefits the vast majority, reduces risks, provides universal health care and focuses on diplomacy rather than militarism abroad (and at home)".
1. Poor Americans do pay taxes. It is true that many of the truly impoverished do not pay federal income taxes. However, they do pay federal payroll taxes, gas taxes, sales taxes, utility taxes and other taxes.
2. The wealthiest Americans don’t carry the burden. Again, income taxes are not the only federal tax. Payroll taxes (social security, Medicare, unemployment) stop at $106,800 in income, which means that those earning more than that pay a smaller share of their income in payroll taxes.
3. The wealthy are paying less taxes. In 2007 the wealthiest 400 taxpayers paid 16.6% of their income in federal incomes taxes, the average Joe 22.5%
4. Many of the very richest pay no current income taxes at all. Many hedge fund managers can defer their taxes for years.
5. And (surprise!) since Reagan, only the wealthy have gained significant income. Since 1980, the average income of average Joe has increased 1%. Those at the top of the income pyramid have seen their income double in that time.
6. When it comes to corporations, the story is much the same: less taxes, 15.2% in 2000, 12.6% in 2008.
7. Other countries do it better. We need "a tax system that benefits the vast majority, reduces risks, provides universal health care and focuses on diplomacy rather than militarism abroad (and at home)".
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