THE MAIN REASON WHY WE NEED TO KEEP THE BUSH TAX
CUTS FOR THE WEALTHIEST AMERICANS (and why it’s
complete-and-utter GREEDY bullshit)
The top 3% of earners already pay a huge proportion of their hard-earned income in
Federal taxes. Raising the current top Marginal tax brackets on those making over
$200,000 from 33% and 35% to 36% and 39.5%, respectively, is punishing them for
their hard-earned success. After all, they pay more than 51% of the total taxes collected.
Bullshit!
The average tax rate paid by the top 3% of earners in 2008(Adjusted gross
income in excess of $204,000) was 21.88% of Adjusted gross income(“AGI”).
Recall from the recent blog “TAX BASICS” that AGI is income AFTER all the
allowable deductions AND that capital gains and qualified dividends receive
special tax rates much lower than those for ordinary income. 21.88% is a far cry
from the 33%,35%, 36% or 39.5% brackets the GREEDY scream and whine about.
By way of contrast, the 2008 tax owed by a single filer with an AGI of $46,000
was $7,850 or 17.06%! An individual who made 22.5% of what the wealthiest
Americans made paid at a rate equal to 78% of the average top rate! While a
married couple filing jointly with the same $46,000 AGI paid at the lesser rate of
13.26%, do the wealthiest Americans work so much harder and contribute so
much more to our society that they deserve to pay at only a slightly higher average
tax rate than those who earn much, much less? If that married couple with the
$46,000 AGI can afford to and does pay 13.26% without whining, can’t
those making over $204,000 afford an average rate of 26% or even 39.5%
without bitching and moaning about “big government” and “being punished”?
Haven’t the wealthy already ‘gamed’ the tax system through capital gains, itemized
allowable deductions, qualified dividends, special trusts, tax shelters, inheritance
provisions and high-paid accountants and attorneys whose sole purpose is to ‘push
the legal envelope’ to ensure their ‘patriotic’ clients pay as little as possible in taxes?
GREED GREED GREED!!!
SOURCES: http://www.irs.gov/taxstats/indtaxstats/article/o,,id=133521,00.html
http://www.irs.gov/pub/irs-prior/i1040tt--2008.pdf
