Wednesday, August 29, 2012

Who Pays Taxes

There is a growing focus on taxes. Most citizens agree that the federal government MUST collect taxes to pay the national bills. The recent conversations are generally about HOW the amount that a taxpayer pays is calculated. Some of our senior politicians believe our INCOME TAX is not fair nor reasonable. What they want to change is the method of calculation and at the same time they want to raise the amount. Their theory is that the (undefined) rich do not pay enough. On a percentage of earnings basis the middle class and the poor pay a much larger proportion of their earnings. I am curious about this. Is it true?

According to the Manhatten Institute: 
  • The richest 1 % of Americans earn 22% of ALL personal income and  pay 40% of ALL personal income taxes.  
  • The richest 5% earns 37% of ALL personal income and pay 61% of ALL personal income taxes.  
  • The richest 10% earns 48% of ALL personal income and pay 71% of ALL personal income taxes.
  • And 50% of total middle class and poor earn 12% of ALL personal income and pay 3% of ALL personal income taxes. 
According to the Brooking Institution:
  • The wealthy pay 67% of ALL federal taxes. 
  • The upper middle class pays 19%. 
  • The lower middle class pays 11%. 
  • The working poor pay 3%. 
  • The non-working poor pay nothing.
President Obama and the Democratic Party claim the American income tax is not FAIR. After reviewing the figures above a person has to wonder what they actually think is fair. Actually President Obama and his political allies KNOW EXACTLY what the actual figures are. The people that listen and believe  their demagoguery are ignorant of the facts.


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