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Making the Numbers Say What You Want Them to Say
By JLP | April 8, 2006
According to this article by David Cay Johnston of the New York Times, Americans with incomes of $10 million per year or more received an average tax break of $500,000 due to President Bush tax cut on investments. Sure, $500,000 is a lot of money. However, what he isn’t telling us is how much they STILL PAY IN TAXES.
The article states:
“Among taxpayers with incomes greater than $10 million, the amount by which their investment-tax bill was reduced averaged about $500,000 in 2003, and total tax savings, which included the two Bush tax cuts on compensation, nearly doubled to slightly more than $1 million.
These taxpayers, whose average income was $26 million, paid about the same share of their income in taxes as those making $200,000 to $500,000 because of lowered rates on investment income.”
Personally, I could care less about what the dollar amount of their tax cut was. It’s when their PERCENTAGE is less than mine that I’ll get upset. I still think we should go with a flat tax and have the same rate for everyone. Only then will the tax system be “fair.”
Thoughts?
Topics: Taxes | 4 Comments »
April 8th, 2006 at 8:38 am
I do not believe that a flat tax is the best solution. Although it seems fair to have a flat tax, a flat tax does not level the playing field in terms of what I believe is fair.
A low income family paying 15% or whatever a flat tax would be hurts that family much more than a family who makes $500,000 or $1,000,000 a year.
I certainly do not feel that the tax breaks our congress has given to the rich is right, but when we vote rich people into power positions there is little more to be expected than thinking that they will protect their money first.
April 8th, 2006 at 10:31 am
Brad, you probably don’t have all your facts straight. Is “fair” in your mind punishing hard work and success? Success doesn’t happen by way of luck, and punishing it will spell the end for this country’s greatness. Here’s a fact: the top 1% of earners pay 35% of federal taxes. The top 50% of earners pay 97% of all federal taxes. We are in very dangerous waters, because once only a minority pays the majority of taxes–and as you can see we are almost there–our tax system will turn from “unfair” to “punitive” and folks will look for other places to earn, invest and retire their money. These are the folks that create jobs and pay for the welfare state.
BTW, these aren’t some stupid Howard Dean or Michael Moore-like talking points, see for yourself on IRS’s website at http://www.irs.gov/pub/irs-soi/03in05tr.xls
April 8th, 2006 at 2:26 pm
Vlad is right. What good would it do to give tax breaks to people who pay very little if any taxes to begin with? Other than make some Washington liberals feel all warm and fuzzy inside.
April 8th, 2006 at 5:07 pm
Vlad, I certainly understand your argument. Perhaps I was not clear in my comment or I don’t undestand yours. My argument was not to give a tax break to anyone but that a flat tax would not work because of the way the system is setup.
I was unrealistic in my example of a 15% flat tax when realistically the flat tax would probably have to be higher than that, maybe much higher.
I certainly understand the fact that most of the taxes is paid by those that make the most. But the argument that you raise that if we continue down the road of the wealthy minority paying for the poor majority will lead to the end of our country’s greatness is not something I agree with.
Our country’s greatness will fall because our government spends more than it brings in.
If everyone wants to pay less taxes then those that we send to Washington need to step up and understand that as long as they keep down the path of an unbalanced budget then the rich are going to be the only ones to make up for it down the road.