Statistics show that people in the US in the top 1% for annual gross income, are paying 39% of all federal taxes.
The top 5% are paying 60% of all federal taxes.
The top 10% are paying 71% of all federal taxes
The top 50% are paying 97% of all federal taxes.
The bottom 50% are paying less than 3% of all federal taxes. The cut-off point between lower and higher 50% for annual gross income is approx $38,000 per year.
My 6th grader looked at those numbers and said, "But dad, that doesn't seem fair". Out of the mouths of babes comes the obvious truth. Logic at that age tends to be pure and unbiased.
I had to think about it and consider that my 6th grader is probably right.
How can anyone imagine that it is "fair" that the very unfortunate and the unlucky and the downtrodden and the destitute, who might be making only $38,000 per year, should be expected to contribute as much as 3% of their income to federal coffers to pay for federal programs?
How unfair and unreasonable a country the US has become where we would ask a person making $38,000 to pay $900 per year, as a contribution to federally funded programs like the military and transportation programs such as roads and bridges and railways and airports and ports, and federally assisted healthcare programs such as Medicare and Medicaid and CHIP and marketplace subsidies to buy down the price of Obama health care plans, and education programs, and payments for federal retirees and veterans, etc.
And the lucky fortunate "won the lottery" type of dude who by pure accident and great luck is making $200,000 per year ends up paying only $60,000 per year in federal taxes.
The poor unfortunate gets robbed by the federal government, and after taxes only has $37,100 left to spend.
The lucky dude who just happened to be fortunate, gets a gift from the federal government, and after taxes still has $120,000 left to spend.
How can it possibly "be fair" that the unfortunate dude has only $37,100 to spend after taxes and the lucky bastard has $120,000 to spend after taxes?
This has to be one of the biggest issues in the US today. The inherent unfairness in the tax system that leaves the unfortunate who happened to be unlucky, with a lot less money than the fortunate few who happened to be lucky.
On the basis of nothing other than luck, the federal government decides that the unlucky person only gets $37,100 of spending money, and the lucky person gets $120,000. The very definition of UNFAIR!!!
I'm sure that once these statistics are published on global basis, we will see a huge drop off in interest of immigrants. USA is currently the top preferred destination of immigrants on a worldwide basis. If only the masses of people trying to get in, knew how unfairly they are going to be treated after they arrive, I'm sure they would want to stay where they are.
STEEM On !!
DaveB
Image from pixabay.
https://www.ntu.org/foundation/page/who-pays-income-taxes
even your kid can point out that issue trump is so dumb lol
Actually the point my 6th grader was making - why doesn't everyone just pay 10%? That would be fair.
He has many group projects at school, and he observes that when doing a group project one or two in the group end up doing most of the work and some do nothing, yet everyone gets the same grade.
And his view is that is unfair.
In grade 6 your world view is still innocent enough to be able to recognize lack of fairness when it hits you in the face.
But today, if you believe the Liberal leftist socialist media, it is "unfair" that the 50% making lowest income pay nothing in federal income taxes. That is the new definition of "unfair".
Careful what you ask for if you ever vote in Socialists. Eventually the definition of "unfair" will turn against you and everything you thought was yours will be taken away from you in the name of "fairness"
The rich never pay their "fair share" . This is why they are rich !!! The poor have nothing to give. They only take from the government in the form of securities. Taxes are only for the salaried middle segment who pays on behalf of all segments. This is an economic truth. 1% of the world enjoy 90% of wealth . and 99% share 10% of world wealth. This is not just the story of america. This is the story of the world :)
You do realize that the facts I provided are in fact, "the facts"?
40% of all federal income taxes are paid for by the top 1%. And your complaint is they are not paying enough.
What percentage of all federal income taxes do you think should be paid by the top 1%, if 40% is not enough?
Is it enough if they pay 60%? 80%? 95%?
Would it be enough for you if the top 1% paid 99% of all federal income taxes?
Have you thought through the likely outcome of trying to force the top 1% to pay 99% of all federal income taxes?
Finance is not my space hence I will not be able to answer you accurately. What I do feel is that the pressure of taxation on the middle segment is intense. Taxation on luxuries and wealth acquisition can be made more intense. Perhaps this will create some balance. Yes , you have done good research and provided factual information.
There is a another dimension that also needs to be explored. Government needs to spend less, spend smarter, spend within budget, publish and follow budget, etc.
No person gets to spend without some recognition of your budget and your ability to pay back all that you borrow.
We should be enforcing same limits on government. If government would just cut spending by 1% per year for next 20 years, the budget would easily balance. Is it really so hard to have the discipline to CUT your spending by 1% per year?
Yes . This makes sense to me. "Government needs to spend smarter ". It is not about less or more. It is about spending and budgeting smarter. Too much money is lost on loose and unnecessary ends. If Government looses money, public suffers.
Upon reading and carefully evaluating the comments I can only come to one conclusion.
It would be impolite to state it however and certain commenters would take offense.
Let me offer to help. The scope of financial illiteracy has risen to such high levels, and all these illiterates still have the right to vote, and we are so close to the tipping point where 50% of voters pay no federal taxes, that the Republic is in danger of being democratically voted into full collapse.
Greed and envy in the so-called "have not" class, whipped into a frenzy by the liberal left media, could result in the entire system collapsing.
Root cause issue - decline of the public education system, which has been taken over and corrupted by the socialists on the left.
(gasp) are you telling me that the pubic educations system...doesn't?
Do you forget that TRUMP PAYS NO TAXES and is afraid to admit that?
He has lawyers that just sink it all into tax shelters.
So what would any rational person expect him to do?
Sure....
Trump likely isnt even worth 1 billion dollars
Trump considers himself a billionaire because he is nearly $1 billion in debt.
That's certainly not the point..
The point is he is willing to do most anything to become worth a billion, including having tax laws changed to line his pockets further.
It's a rich man's world afterall ^.^
Well idk about that hes already lost millions of $ from vacated renters in NYC directly due to being the Meme in chief. Look at Trump Hotels and Resorts ipo, it failed while he nickel and dimes his own company with his personal brand. Cheap hacktics
I love your satire although I did cringe :). The marginal rate system creates exponential tax burden differences between rich and the 99%, and the figures you laid it out shows it clearly. Even if we had a flat tax rate system the statistics would be similar but less drastic. There will always be loopholes but the dollar amount of tax paid by the wealthy is always so much higher.
I read the recently published framework for unified tax reform from the 119 Congress and the bullet discussing the increase to standard deduction, I beleive it is labeled as a "zero tax bracket." The increase in my view levels the playing field for renters and homeownership, but we shall see how it plays out.
I look forward most for the business tax rate decreases that will incentivize job creation (here's hopeful). I will probably write a few articles on the tax reform soon, assessing New law vs existing law.
Steem on Dave!
Thanks for reading and noticing the satire. Many didn't. Which was a combination of scary and sad.
is this parody?
I would say so.
Nope, the post was not parody. I learned that after researching the definition for "parody"
The top 50% are paying 97% of all federal taxes.
The bottom 50% are paying less than 3% of all federal taxes
that is not fair..correct.
I may have mistakenly used parody improperly.
I should have said "is this for REAL?"
You are correct in saying it isnt fair. Even my 6th grader could see that.
His proposal - why doesn't everyone just pay 10%? That would be fair.
So I have a flat taxer living in the house, that is only 11 years old.
At that age, still innocent enough to imagine the world won't corrupt the word "fair" into meaning 50% don't have to pay anything.
I had to research parody vs satire before I could answer. My research is below.
On the basis of research, I have to declare this post was NOT parody. Now if you had asked about satire ..... LOL
Parody - a form of satire that imitates the characteristic style of a particular writer, musician, artist, speaker or genre using deliberate exaggeration for a comic effect. Satire - the use of humor, ridicule, irony or exaggeration to make fun of or expose and criticize a person's vices or lack of intelligence.
The richer you are the less you pay. Unless of course you don't make enough to be "worth it".
Don't we have a beautiful captalistic system in place... (sarcasm voice on)
Becoming successful: GETTING PUNISHED. Its wrong to be successful.
It all depends on the the definition of successful xD
Creating jobs or building a company, fixing a house up and selling it, flipping a stock and making money, selling a business, selling anything! CREATING and PROFITING. Thats success. Governments DON"T LIKE that. They punish you in the form of taxes. Same as STEALING YOUR MONEY.
Honestly, the whole mindset of creating + profiting equals success is one of the things wrong in our current society... Success has nothing to do with profit.
Thats funny. I'm successful. I make no money, create nothing, sell things for free, and am very successful. Success has nothing to do with profit. Ok..Smacking my communist head right now hard..
The top 50% are paying 97% of all federal taxes.
how exactly...is this the less you pay?
Like I said, the lesser 50% pretty much pay nothing as the amount they make ain't worth it. Once you start coming in the upper circles you pay less money compared to those below you (top 1%, top 5%, top 10%). The more money one has, the better tools at his disposition for tax evasion...
math is hard.
lol.
I'd say the 'fair share' of anyone when it comes to being robbed...is zero.
tax IS theft.
Trump will never do that, he has been cutting tax's for the rich though
Terrible policy. What have the rich ever done to deserve paying less than 50% of their lucky winning in taxes? Hope Trump succeeds in doubling their tax rate, that should produce more "fairness" for everyone,
Cheers & 'succeeds ' hm, he is not trying too?
There are going to be arsxxxholes at every level of income. So of course there are some that are rich.
But to assume that everyone that is rich got there by cheating, stealing, or otherwise harming someone is a sad psychology.
Take a look at the work being done by Bill Gates Giving Pledge.
Do you believe that all the billionaires on the Giving Pledge got their money from cheating and stealing and causing harm?
I'd far rather leave the billions with these billionaires and let them work on causes they find worthy, compared to sending it all to Washington where it would vanish in the cesspool of corruption.
FIXED: Trump will never do that, he has been cutting tax's for the successful though
As unfair as it always has seem, the rich will get richer . The rich have too much power to loose this power. Trump is one of them, he wouldn't tax the rich anymore , powerful elites do things in their power and take over media and what not .
The Bezos Post, published daily in Washington, is a good example.
And of course Zuckerberg is rumored to want a run in politics in near future.
I wonder how many people realize that, initially, the only ones who could vote were those who owned land. The reason for this is because the Founding Fathers, felt to vote, someone should have something on the line. Today, if someone proposed that they would be called racist, sexist, and a host of other names. However, when you look at who does the voting and the issues our "elected" officials vote upon, isnt it interesting that the loudest ones are those with nothing in the game.
The term 'Unfair" or "level the playing field" is absurd. I find it entirely unfair that I cannot share in the billions created by the NBA since I am a sub 5'9" guy who lacks the athleticism, let along basketball skills, of Lebron James and Michael Jordan. It is unfair that I never got to share in that wealth because of something I had no control over that was given to be genetically. Therefore, the playing field should be leveled by the greedy owners compensating me for historic unfairness, instilling quotes, and making Lebron James play on his knees.
What is also unfair is that those greedy rich people who use the tax code to their advantage by giving to charity instead of paying tax on the money. Where do they get off doing that? Greedy people just trying to screw the government by helping out others.
Someone after my own heart. I can feel it coming through in your post how much the "unfairness" is personally bothering you.
Good point at the end about the charity. Always thought that was a dodge to get out of taxes. Excellent catch, that helps prove the point about "unfairness"
I am all about the fairness....
Hell I am so into a level playing field that I might change my username on here to SteemRoller.
We cant have anyone getting a leg up unfairly.....dumb down the smart kids, play the non athletic kids and give them a trophy, and take the money from those greedy rich people (which actually means those hardworking middle to upper middle class people).
Hell, I just went through a hurricane and even though I sustained no damage or loss of work, I deserve a check from FEMA...or Trump...or Rick Scott....or someone.
Someone needs to pay me...it is only fair.
Now you're getting the hang of it.
Convince yourself you have a serious and valid grievance. Make lots of noise. Get your grievance more widely recognized. Start up a grievance lobbying body.
And you too can become of high interest to a Democratic politician, so they can offer to pay you off and make you whole on your grievance, with $$ in exchange for votes.
Which used to be illegal. But the multiple new precedents set of Hillary and Comey, the coast is a lot clearer for pay to play schemes becoming the new norm, as opposed to the felonies we used to incorrectly think of them as being.
Felonies are unfair so we need to do away with them....
Here is another travesty that I had to go through. I am left handed and in elementary school, my school district in NY didnt have enough scissors for left handed people (you know the ones with the green covering that were reversed). Thus I was stuck having to use right handed scissors which hurt my thumb. Perhaps that is what ruined my career in the NBA....I think it stunted my growth.
Who is going to pay for that? Maybe Chuck Schumer will help me out....he seems like a caring Joe.
Chuck is a lying cheating bozo. Bu at least he is smart enough to see that Trump bashing isn't going to be a good enough platform to win the next election. He recently came out with the radical idea - Democrats needs some policies to run on, they need to explain what it is they would do if they were back in power, if they are ever going to get back in power.
great news ..good analisis,thanks for updates news
Ahhh, you saw right through me, and realized that was an anal dump type piece of analisis.
I can't fool everyone all of the time.
I think people who don't pay taxes should not be able to vote.
Red lights have started going off, I hear helicopters in the air, search lights are on, and the dogs are barking as they are set on the chase.
Politically incorrect savage called Way-Truth-Light is going to be chased down by the grievance Nazis, for suggesting the unthinkable.
And your idea is obviously not "fair" to those unlucky enough not to make the money needed to have to pay taxes.
You are obviously a bigot. And I'll throw in gratuitous claim of racist as well, which is totally unwarranted by your claim, but people often like to just throw bigot and racist together, and hurl them around as a travelling pair.
So take that you tax paying bigot racist dude. LOL
Probably the dumbest post here. So, if you become successful you should get punished by getting your money taken away?
tomm, you talking to me?
My post and all comments were satire. I was using 100% opposite of logic and pretending to be an average Democratic voter for a day. Many missed the satire.
Someone making 38000 is not poor and surely paying more than 900 a year in taxes
Try living on $38,000 a year in Manhatten, SF, DC, or Chicago.
Actually, try living on that type of money anywhere in the Northeast and you will realize that person is in poor financial shape.
Interesting correlation. All the places controlled by Democrats, where Democrats set the tax rates and decide how to use the money they collect, are places that "poor people" earning less than $38K can't afford to live.
Whereas if you may $38K per year in Ames Iowa, you can get by OK.
Make you stop and think ......
A republic is rule via representation where is a democracy is mob rule.
Notice the similarities of the words. In a democracy, people vote themselves a check.....
Great observation - couldn't have said it better myself - it's much like correlation of gun violence being heaviest in cities where the 2nd Amendment is restricted.
No it isnt, unless u support a family. I live on less than that with a 1,000 monthly rent in DC the most liberal place in the US
Yeah maby manhattan and SF but millions of people live in US cities with less than that. Tax code in the US is a complex heap of bullshit and so is this post
By federal tax standards, $38K is lower half. Probably doesn't pay much more $900 in federal taxes, depending on deductions and itemizations of course. For total taxes certainly will pay more than $900, when you factor in sales tax, and state tax, and county tax, and FICA federal payments, and gas tax, and alcohol tax, and property tax, and etc.
Fed taxes paid by someone who makes about 40,000 a year will be about 4 grand i came to this number by using an official federal income taxe calculator
Single or married? How many children? With or without mortgage deduction? Do you tithe and donate 10% income to charity? What state do you live in (state taxes are deductible at federal level).
Thats without deductions. if your making 200,000 and paying 60,000 in taxes that would also be without deductions. And someone is smart enough to make that much money and pay that many taxes, they arent trying hard enough to find creative solutions to their problem. There are hundreds of ways to pay less tax. Start an LLC spend or invest your income, write it off as a business expense. They could buy apartments with morgages, charge rent, write off the morgages. Its not hard to make money when you have money in America you just cant let it sit
I don't think we have seen the final changes to this Tax Plan. As it is, would it even pass?
Will the liberal left media succeed in convincing the dumb masses that the tax plan is really just a tax break for the rich? If the majority of dumbociles end up believing that, then the RINOs won't have the cajones to pass the bill, and it will fail just like Obamacare repeal has failed on many recent votes.
RINO's and cajoles....not something that is possible...they lost them years ago.
Great logic I like...thanks for sharing :)
The logic is either flawless, or fatally flawed. Has to be one or the other.
Pahahaha. Awesome.
I'll bet those rich people don't even take advantage of that healthcare they pay for either. Being so rich, I'll bet they go private.
Amazing. In addition to being lucky, those rich bastards are also dumb, not taking advantage of the high quality government health care programs. Must be great to be lucky.
Haha! I couldn't stop reading the comments too. Such perfect points! Analogy too.
Many of the comments are downright scary. Can people be that foolish?
Yes they absolutely can be that foolish. Sad I know
Congratulations @davebrewer
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Exceptional article about taxation and an excellent review of governance...!!!
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Hi @davebrewer. Income disparity is a miserable experience for at least 90% of us. Now, the current administration wants to repeal the estate tax, allowing huge (likely sheltered) wealth transfer to their next generation without paying tax. The rich stay rich, and the poor stay poor. Unfortunately, most people pay no attention to this at all, to their own detriment. If the public was as angry about wealth disparity as they are about kneeling football players and false patriotism, we might just make some progress on this topic. We need the government to fear the people, and not the reverse.
So is the answer to government disparity to try to pull the rich down into the mud with the "so called" poor? This is what Obama tried for 8 years, and the income disparity just got worse.
Or is the answer to try to help the folks at the bottom find ways to get good paying jobs, get off welfare, develop skills that are in demand in the economy, keep out illegal immigrants who push wages lower at the lower end of scale?
Interested to know which path you think is more likely to resolve income disparity on permanent basis?
Estate tax is a good example of your general mindset. Why should the money go back to the government? The government doesn't own all the money. That money was earned and taxes already paid. Why do you assume that the government should be able to take it all back at the end of days?
I like the concept of a flat tax, evenly applied against all income groups, including corporations. For example, ten percent. Period. No shelters, no tricksey offshore hiding, no loopholes. From my perspective, this is tax equality because everyone is taxed equally.
In terms of raising income nationally, we'd go far by taking the profit out of higher education and healthcare. If education is available to all, we would likely see higher rates of education, innovation, and income...which leads to greater tax revenue.
Unfortunately our government isn't accountable to the people, and is instead significantly encumbered to players in the military industrial complex, banks, and very wealthy special interest groups. They simply do not represent the people. I'd love to see this change, yet I have no idea how. Do I trust the government with my tax dollars? No, not at all but I'm not interested in going to jail for not paying them, and I can't afford expensive lawyers and accountants to slog though thousands of pages (millions?) of tax code so that I, like the super-wealthy, can find ways to avoid paying my fair share. Nor can I afford to sponsor potential elected officials who will further my own wealth-preservation initiatives and legislation that protects only me, and few else.
tax is always unfair they are just to make richer more rich
I am speechless and dumbfounded.
sorry for that buddy
Very good,
This post received a 1.6% upvote from @randowhale thanks to @davebrewer! To learn more, check out @randowhale 101 - Everything You Need to Know!
This is eye opener... Thanks for the analysis
verry good news...
Sebuah kapal dan pelabuhan yang sangat indah
Thanks @davebrewer
@davebrewer,
I am not a US citizen, but the same scenario happens here too! The charge around 3%-5% from us and if we deposit funds in bank they charge 2% again :/ This is a sick! They robe us by saying government! And we obey for what they say! But most funniest part is they (I mean president and other ministers) never pay such things!
According to my viewpoint politicians are scammers! Who scam everything and everyone! Great article about a common problem!
Cheers~
When your 6th grader finds out that the money is created out of "thin air", I wonder if he will believe people should be taxed at all?
Good news.your thingking is right for democracy.
amigo #resteemia at your service
riches pay taxes, but poors pay double taxes by purchasing riches's products & services @davebrewer
ReSteemia
'UpVoted ReSteemed Commented'
We need a progressive system of taxes. That is, the one who receives more pays more interest on earnings.
ahhhhh .... you dont call what we have today progressive? 1% pay 40% of all federal income taxes.
That is not progressive?
you did a lot of research there man quite effective it was thanks for sharing but tax is something to be looked for and need to be made effective for all
that's the biggest issue and it doesn't seem to be getting fixed at all !!
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STOPCongratulations @davebrewer!
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STOPtrump is so dumb