Thoughts on Today's Political Landscape

[GRH]

Originally Posted by tslust

As I've said in another post. The top 1% of wage earners pay about 38% of the Federal (doesn't include state, county, and city) tax burden. While the bottom 43% of wage earners pay no Federal taxes. With about a third get money back from the government (They pay nothing in, but get money out; I guess that makes them tax takers instead of tax payers.). So, I ask you how those "evil" rich parasites?

And as I have previously replied in another post...That is utter and complete bullshit. The VAST majority of people DO pay federal taxes in the form of regressive payroll taxes. Not everyone has income tax liability...That is true. But the right likes to talk about the tax burden the wealthy pay...They like to leave out the fact that the top percentage of earners own the VAST majority of the wealth in the US. Given that the top 20% of earners own 80% of the nation's wealth, I have absolutely no problem with them paying a higher share of the tax burden. They wealthy already own the country...It's high time they start paying for it.

[Enoch Root]

Originally Posted by GRH

And as I have previously replied in another post...That is utter and complete bullshit. The VAST majority of people DO pay federal taxes in the form of regressive payroll taxes. Not everyone has income tax liability...That is true. But the right likes to talk about the tax burden the wealthy pay...They like to leave out the fact that the top percentage of earners own the VAST majority of the wealth in the US. Given that the top 20% of earners own 80% of the nation's wealth, I have absolutely no problem with them paying a higher share of the tax burden. They wealthy already own the country...It's high time they start paying for it.

Could you do me the honor of reposting that post of yours here GRH? I knew you had responded to tslust in the past but I could not find it since I remembered no specific wording and I have not seen you active in a long time.

I meant to respond to tslust's assertion with something akin to your comment about "top wage earners owning 80% of the nation's wealth," alas Tracy got up to his old tricks again and I wanted to observe how that went down first. I guess I may as well post that soon.

[TracyCoxx]

Originally Posted by GRH

Given that the top 20% of earners own 80% of the nation's wealth, I have absolutely no problem with them paying a higher share of the tax burden.

In light of this, those that don't pay taxes shouldn't expect much of a say in how the country is run. That's one reason I'd like to see a flat tax so everyone has skin in the game.

[tslust]

Originally Posted by TracyCoxx

In light of this, those that don't pay taxes shouldn't expect much of a say in how the country is run. That's one reason I'd like to see a flat tax so everyone has skin in the game.

You took the words right out of my mouth.

I too favor the idea of a flat tax. Be it either a swinging percentage based on tax brackets, or a fixed percentage. According to my uncle's idea, the government would take in at least 185 billion dollars each mnoth.

Taxing the rich is not an answer, cutting spending is! The rate the government is spending money (over 300 billion a month) is unsustainable. It doesn't matter how much taxes would be hypothetical raised, it won't ever be enough.

[GRH]

Originally Posted by TracyCoxx

In light of this, those that don't pay taxes shouldn't expect much of a say in how the country is run. That's one reason I'd like to see a flat tax so everyone has skin in the game.

Fortunately, the Constitution doesn't "weight" the value of a vote based on the income of the person casting the vote. Otherwise, we might as roll over and hand the wealthy the small portion of the country they don't already own. They've already rigged the game to funnel as much wealth away from the middle class and towards them...Why not remove the few safeguards that are left in our democracy? We'll just correlate the value of a vote to the income of the person casting it.

You do realize that the wealthy pay lower "effective" tax rates (on their total taxable income) than most middle class earners? Middle class earners pay a full 6.2% for Social Security/FICA tax...This is on earnings up to $106,000 (which the vast majority of earners make below this). Meanwhile, the uber-wealthy pay the same 6.2% on their first $106,000 in earnings. Any income beyond this cap isn't taxed. So FICA taxes are regressive in nature. To a family making the median income of $50,000/year, they are paying in excess of 6% FICA tax. Meanwhile, if you have a millionaire bringing in $1,060,000 in income, this millionaire is only paying a 0.6% FICA tax.

On marginal tax rates, the wealthy do have a higher tax burden. However, to suggest that they pay "higher taxes" doesn't really elaborate on the way that marginal taxes work. EVERYONE pays the same tax rate on their first dollars of earnings. If I make $10,000 and a millionaire makes $1 billion/year-- guess what, we BOTH pay the exact same rate of taxes on those first $10,000 of earnings. If we each make an additional $50,000 of earnings...Guess what? The millionaire and I BOTH pay the exact same income tax liability on those dollars of earnings. It is only when the millionaire is making money in the next tax bracket (a bracket that I don't fall into because I'm poor) that they begin paying taxes at a higher rate. But technically, everyone pays the same tax liability on earnings. We already have a "flat tax" in this respect. The right likes us to believe that the poor "job creators" are taxed at 30+% on their TOTAL earnings-- this is simply not the case. The one caveat is that there are various deductions, loopholes, etc. which skew income tax liability for lower-income earners.

Now, the millionaire and billionaires do pay higher marginal tax rates. However, given that these individuals often receive substantial portions of their income through capital gains, dividends, carried interest, and/or stock options, they end up paying substantially less tax liability on these favored types of income. This is the reason that Warren Buffet has a lower effective tax liability than his secretary. I'm sorry, but for the second wealthiest American to have a lower effective tax burden than the secretary of his company suggests a deeply flawed tax system. And any attempt to make a "fair" or "flat" tax is merely a disguised way of shifting more of the tax burden to the poor (and by default, move tax liability away from the wealthy). And I think George Bush Sr. said it best regarding the old trickle-down theories of Reaganomics-- it's nothing but voodoo economics.