Thursday, July 30, 2009

Defining fairness - Tax Foundation: "Tax burden of top 1% now exceeds that of bottom 95%."

This data is from 2007 and the top 1% paid 40.4% of all income taxes compared to 39.4% for (almost) everybody else. Since then, Obama has proposed allowing the Bush tax cuts to expire, an additional surtax to pay for government-run healthcare, raising the cap on Social Security taxes, and a limit on deductions for charity and "Cadillac" private health care insurance.

But let's put money aside for the moment: what does it mean for our democracy when a very small percentage of Americans pay all the taxes? Inexorably, it leads to a plurality who will always support a larger government because somebody else is picking up the bill. Eventually, to evoke Margaret Thatcher, the government is going to run out of "other people's money."

13 comments:

Anonymous said...

Let's put money back for the moment. As of 2004, the top 1% of taxpayers owned more wealth than the bottom 90% combined.

The CBO reported that from 1979-2005, real post-tax income growth rose 6.3% for the bottom 20%, by 21% for the middle 60%, by 80% for the top 20%, and by 228% for the top 1 percent of taxpayers.

In the two years from 2003-2005, the increase in income inequality between these groups (both pre- and post-tax) was greater than during any other 2-year period in the CBO's historical records.

Poor, put-upon 1%. Where DO they get the strength to carry on?

Anonymous said...

This is a completely dishonest statistic. What would the numbers be if they were computed honestly, i.e. including the 15%+ withholding tax on every penny of the bottom 95%'s incomes? Oh yeah, that's not "income tax". Well, it's a direct tax on income (okay, half of it's is paid by employers, but that's a distinction without a difference), and I say that makes it an income tax.

Vermont Woodchuck said...

Lets see what happens if the 1% decide to make just enough to take care of themselves.
Close down the small business to real Mom and Pop store hours and lay off the PT workers. Call it "Going Galt", a cash and carry, no credit operation.

Sell the big house, the second car and pull the money out of the banks so the Gov't can't track it. What then?

The Galt of Horror said...

O yes, the imaginary "Going Galt" threat. It's amazing how many discouraged multi-millionaires post on blogs.

And if the other 99% don't quiet down back there, I swear, the 1% are TURNING THIS CAR AROUND RIGHT NOW, MISTER!

Anonymous said...

"Poor, put-upon 1%. Where DO they get the strength to carry on?"

Something tells me they have plenty of strength from all the practice they've had carrying your deadweight.

Anonymous said...

That is NOT in the top 1% of witty comebacks.

Vermont Woodchuck said...

Well Mr. Galt of Horror, I am one employer of several PT workers who will shut down, donate the land and building to the Vermont Eyesore Registry, just to take it off the tax rolls.

Buying a smaller place, in a very crimson state keeps me in MY money and the shiftless in your money.

The Galt of Horror said...

So what are you waiting for? Going Galt isn't like nuclear deterrence. It does nothing unless you use it.

Vermont's "a very crimson state"? Before checking out of society, I hope you counted your hoard of pirate gold better than you count votes. Vermont went 68-31 for Obama, your state Senate is 23-7 for the good guys, and your D-VT Representive ran unopposed (after replacing that well-known neocon Bernie Sanders). Maybe you were thinking of those stalwart Vermont conservatives Douglas, or Jeffords, or Leahy, or Stafford, or Aiken... hmm, maybe great-grandfather still remembers one?

Oh well. So long, and have a good trip.

The Galt of Horror said...

Alternately, maybe you meant that you're moments away from settling your affairs, and fleeing to a crimsoner state than Vermont.

Travel tip: ditch the sweaters. All remaining "very crimson states" have summers about 45 degrees hotter than Vermont's.

Vermont Woodchuck said...

I didn't realize Wyoming, South Dakota and Montana were below the Mason Disox line.

The Galt of Horror said...

I didn't realize you were still in Vermont. Go, man, go! This Rand is your Rand!

Vermont Woodchuck said...

Really bothers you when it's just your money going into the welfare kitty.

Thanks, but I donate to whom I wish, not from a government checklist.
Get used to it; there's a bunch more coming your way. Tata!

Anonymous said...

The teabagger attendance was embarrassing, but at least they showed up.

The invisible "Going Galt" army don't do anything but whine and whine about almost being on the verge of maybe planning to consider taking action any minute now. Ooh, chilling!