“pay their fair share”
I hear the drumbeat underway to now turn to infrastructure and the need to raise revenues to pay for it and all the stimulus dollars handed out. Hear it?
Boom, Boom, Boom.
Thus, the next thing you will hear from the leaders of raising taxes is “its about the wealthy paying their fair share.”
Boom, Boom, Boom.
Before we get into the real issue, consider these actual facts:
The top 1% (one per-cent) currently pay 38.5% of the U.S. income tax.
The top 10% paid 70% of all federal income tax.
The top 25% of earners pay 87% of all federal taxes.
The top 50% pay 97% of all federal taxes.
That leaves the remaining 50%. They pay 3% of all federal taxes.
Okay, absorb that for a second while you hear the drumbeat:
Boom, Boom, Boom
The top 10% of earners in the nation pay 70% of all federal taxes paid.
The top 50% pay 97% of all federal taxes.
The remaining 50% of taxpayers pay 3%.
Got that right?
Now answer this question:
So when they say fair share what do they mean?
What is the fair share anyone should pay in taxes?
I hear the President and Schumer say “the wealthy must pay their fair share,” but the media never asks what is that number.
Do you know what it is? I don’t.
Boom, Boom, Boom
The argument you will hear from the left over and over in the months ahead is the high earners do not pay enough.
You will hear that Warren Buffet’s secretary pays a higher rate than he does.
Immediately that rankles the mind. What?
How can that be?
Then you understand.
His federal income tax rate is higher, but what lowers that rate is that he pays capital gains on his investments at 20%.
Capital gains are taxes on money he already earned, paid taxes on and invested.
His capital gains lower his overall rate because 20% is lower than his federal tax rate.
So he pays a higher rate on income, but why bother with facts when we can fool people and rile them up?
And by the way, it means he pays his secretary very well, because she is part of the 50% carrying the other 50%.
Boom, Boom, Boom
That brings me to the real issue.
There will be a demand to raise the rates on the rich.
The media will love it. Democrats are for you. (I assume they mean the 50% paying 3% of the bill.)
They will raise the income tax rate on those paying.
They will discuss raising the capital gains, calling the 20 or 28% unfair.
Totally disregarding that taxes were paid when you earned the money and you invested in the future. You see, saving is bad.
They may even want 40% of the gains. It will sound great to the media.
Ask yourself if they do that what happens to the stock market, where IRAs, 401ks and pensions are invested. So it will be smoke and mirrors.
Boom, Boom, Boom.
But you say the government will get more money.
Wrong, I say.
You know why?
It’s not the rate you have on a chart that matters.
You can vote any rate you want.
It’s the deductions that they take that matters.
As long as they can meet with their accountants and lawyers and take the deductions you can raise the rate, but you aren’t driving federal income.
You want to raise revenue?
Try leaving the rates and taking away deductions.
In fact, if you reverse the Trump limit on state tax reductions, you will actually be helping the higher wage earners gain more deductions!
This whole thing is a sham.
Fool the uninformed again.
Make them think they are on their side, while protecting their campaign donors.
Then, when revenue is not enough for all their spending, they will raise rates on everyone.
It’s that simple.
Boom. Boom, Boom.
Yesterday we closed with the Peter and Paul story and taking from one to give to another.
Our federal tax rate is an example of that.
50% of federal tax payers pay 97% today.
Who is getting the benefit of the programs that supports?
I would think the 50% who pay 3% of the tax bill are the beneficiary.
So back to the question.
What is the fair share they say is fair?
When does the government rein in spending?
When does Paul support Paul with some help from Peter?
In the meantime — hear the drumbeat:
BOOM, BOOM, BOOM