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X-CalBR8 said:
I had college level economics class several years back and my economics teacher did the math of how much the rich pay in proportion to the poor and it was very shocking, well, to me at least. If I recall his numbers correctly, if you took all of the money that the top 1% of the richest citizens pay in taxes for the year, it would only run the country for something like a little over 2 weeks. It is the poor and middle class that produce the taxes that are necessary to run this country, not the wealthy, like many believe, myself included till I took economics.
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Well, for "progressive taxes" from the
IRS Income Tax Returns of 2001:
Top 1% pay 33% of US Income Taxes
Top 5% pay 53% of US Income Taxes
Top 50% pay 96% of US Income Taxes
Bottom 50% pay <4% of US Income Taxes
Now, if you want to include Payroll taxes (which are not supposed to be progressive, but instead pay for specific, wage dependent things like retirement, unemployment, etc.:
SSI, everyone pays ~15% up to ~$85,000 or so
Medicare, everyone pays ~1.5% (no spending cap)
Marginal Income tax rate in California ~10% (over ~100,000/yr)
Cal Unemployment tax proposed for 2004, 10% of $29k limit
Cal Disability income tax 9.9% (for a machinist)
Cal Disability income tax 42% (for a screen door installer)
Arizona Dis. income tax 3.3% (for a machinist)
Other Taxes:
Cal Sales tax is around 8.25% (except food from grocery store)
Cal Property Tax is approximately 1.2% of accessed valuation
Cigarette and Liquor taxes of many times the base cost of the product
X-Cal, what would you have us do differently. Most "rich" people (and others) would prefer the flat income tax rate of 15% that Russia now has, that Iraq (courtesy of the US led government) now has... And don't forget, that when (or, you are very paranoid, if) Mr. and Mrs. Gate die, they will have to give some 50% percent inheritance taxes to the government--unless they both die in 2010 where for one year there are no inheritance taxes.
I would argue not that we are not taxed enough, but we are spending too much.
And, by the way, that for that poor screen door installer, add up the taxes the employer/employee is paying, without any of that progressive state sales/income and federal income tax:
1.5%+10%+15%+42%=~68% tax rate if he only made $29k/year
It is to the politician's benefit to keep us blind to how much they really do collect.
Are you unhappy that the SSI, Unemployment taxes are capped on income? Those are the only major taxes can be raised--unless you want to go from the ~35% US Marginal Tax rate back to those early 1960 marginal tax rates of 70% plus that were left over from WWII.
-Bill