CADsortaGUY
Lifer
Originally posted by: sandorski
It seems to me that these subjects always get dumbed down and ignore the complexity. As a result, we get a lot of meaingless statistics, moral judgements(fairness), weak analogies, and words such as "Socialism" get thrown around with wild abandon. Let us consider a few things:
1) Is Income Tax the only Tax?
2) Are there taxes that one class pays, but not the other?
3) Are the Rich over burdened? (unable to support themselves, losing worth)
4) If a Flat Income Tax was implemented, wouldn't the Statistics still show the Rich paying a greater Total Amount of Income Tax?
Part of the problem with this issue, it seems to me, lies in the lack of understanding what "Rich" means. Certainly there is a Number that denotes the difference(don't know what it is officially) and that number is relatively close to the Middle Class/Lower Class number(likely from $1-$100,000 depending on whom you compare to), so by definition one would be alarmed that going over that threshhold suddenly increases ones' burden dramatically. However, the Income levels are not as narrowly focussed in Reality as the definitions would seem to indicate.
The definitions certainly apply to the majority of persons, but the Real World has a large segment of the population who make much more. These people are making 10x-100x more, in many cases, then the "Rich" threshhold, as such they skew the statistics of the category "Rich". This skewing is unique to the Rich, as they are the only group that have only 1 boundary(the Lowend of $X).
1) Lower Class: $0-$X(I'll assume somewhere between $10k-$20k)
2) Middle Class: $Upper Limit of Lower Class +$1 to $X(I'll assume $80k-$100k)
3) Upper Class: $Upper Limit of Middle Class + $1 to Infinity(no limit)
There are certainly more than 3 distinctions according to the Tax Code, but when these discussions come up everyone(left/right) like to simplify the issue to a point where their supporting evidence is often totally meaningless. There may very well be an Unfair burden on some "Rich", at the Lower End of the definition, but to lump those in with the Super Rich(which happens) and treat them all as a homogenous group is disingenuous.
Exactly - so why does the argument that the rich don't pay their fair share get sooo much play here and in politics? Is it not just a political class warfare item? And if it is genuine(instead of just a ploy) then what defines "fair" and how do we make it more "fair".
This is where the data I've used for the income tax stats have come from. Keep in mind that they are 2001 figures which just became available recently. It is quite enlightening data. $28500(AGI) will put you in the top 50% of filers(income earners)
I also found it interesting that the 1.3 million returns(top 1%) paid about 300 Billion in taxes which is about 230,000 in income taxes or about 27.5% average tax rate(for income tax) Lots of interesting stats can be culled from that data.
Now again - for the whiners - yes, this is ONLY the income tax portion of taxes, but still the only way we can currently "stick it to the rich".
CkG
Edit - here is a break down of tax collections by quarter since 1988 http://www.census.gov/govs/qtax/table1.xls
