Top Earners in America Pay Just 16% Income Tax

[jabarto]

I posted this in News of the Wierd, but Lemur told me to make a new thread. Happy now, buddy?

http://www.taxanalysts.com/www/featu...7?OpenDocument

In short, the top 400 earners in America are paying less taxes and have higher incomes than ever before. Meanwhile wages have been stagnating for decades while the cost of living continues to soar, our public education system is crap, and we have woefully inadequate health care.

I said that (and what I'm about to say) in the news thread, but it boggles my mind that the people who should be pissed about this - the working class who were exploited to get those top earners to where they are - are defending them. America has the completely insane notion that people are rich through hard work and merit, instead of, you know, the typical way that wealth is accumulated here; exploitation, luck, and inheritance.

But I suppose I should tack a discussion point to this post so we can actually discuss things. So I guess my thesis, as it were, will be on raising taxes on the rich. Now I have a few moral reasons for thinking that should be so, but I read a discussion post elsewhere that made a point I had never considered, but agree with, that being that the wealthy business owners (for example) benefit from public services more than any other demographic. Thus it really goes without saying that they should pay more, as they're getting more out of the system than anyone.

But I've rambled enough. Discuss away!

[Crazed Rabbit]

As I said in the NotW, the top 1% of of income tax returns paid 39.9% of all federal income taxes in 2006 - a share that increased from earlier in Bush's presidency, and even though they earned 22% of 'adjusted gross income'.

So I don't quite see how that's a terribly low percentage. The people you cited, the top 400, mainly made income from capital gains - like the stock market, which has a relatively low tax rate compared to wage income.

But guess what - people don't care because they realize the economy is not one set 'pie' where to take a larger slice you have to take something from somebody else. That is not how economics works. Someone else getting richer doesn't make me poorer.

You say they're getting more out of the system? Well they're contributing much more than that in terms of jobs and investments.

CR

[Sasaki Kojiro]

So I don't quite see how that's a terribly low percentage. The people you cited, the top 400, mainly made income from capital gains - like the stock market, which has a relatively low tax rate compared to wage income.

Perhaps jabarto is suggesting an increase in the capital gains tax rate.

[jabarto]

So I don't quite see how that's a terribly low percentage. The people you cited, the top 400, mainly made income from capital gains - like the stock market, which has a relatively low tax rate compared to wage income.

You're right, as is Sasaki. I'm all for taxing capitla gains, inheritance...whatever needs to be done to make the tax effectual.

But guess what - people don't care because they realize the economy is not one set 'pie' where to take a larger slice you have to take something from somebody else. That is not how economics works. Someone else getting richer doesn't make me poorer.

So how, then, do you account for the stagnating wages of workers and steady increase of CEO wages, amongst other things, over the last 40 years?

You say they're getting more out of the system? Well they're contributing much more than that in terms of jobs and investments.

CR

Heh, good one.

[Beskar]

I feel like replying, but you all know what I am going to say.

[Kadagar_AV]

well.... Thank GOD we have the american dream... You know, working your arse off to against all odds maybe one day have a glimpse of what the rich people have...

it's not like you need things like health care or vacation, no, you have the DREAM!!!

[Lemur]

Lemur told me to make a new thread. Happy now, buddy?

Yes, thank you very much! I'm freakishly protective of NotW, as many Orgahs can attest. Thank you for taking this discussion to its own space.

[jabarto]

Yes, thank you very much! I'm freakishly protective of NotW, as many Orgahs can attest. Thank you for taking this discussion to its own space.

Heh, you're welcome. I didn't plan on discussing it at first, but more information has come to light as I read more into it, so I thought I'd open up an avenue for that.

Also I'm too lazy to multiquote but Kadagar pretty much nailed it.

[miotas]

Wow, that is (quite literally) backwards.

[Kadagar_AV]

Also I'm too lazy to multiquote but Kadagar pretty much nailed it.

*bows*

I'll be here all week :)

[Xiahou]

Who cares? IIRC, my effective tax rate for '09 was around 10%- including state taxes. Something like 40% of Americans pay nothing in federal taxes. How much did you pay?

[JAG]

CR - still standing up for the big man I see. ;x