Ken's Project Blog

July 18, 2011

Shared Sacrifice

Filed under: In The News,Politics,Taxation — Ken @ 12:07 pm

Federal Income Taxes (from 2008)

Many politicians are claiming that the Millionaires and Billionaires (as defined by them as individuals earning over $200,000/year, couples filing jointly earning over $250,000/year) need to pay their fair share in these troubled economic times – we need shared sacrifice.

Well, let’s take a look at where we are now – it is claimed that the top 1% of taxpayers earn 20% of all income, so it would stand to reason that they should be shouldering about 20% of our annual federal income taxes, right? Guess what – they don’t. Not even close. Do you know what percentage of the federal income tax receipts the top 1% are paying? Thirty-eight percent – nearly two times their “share,” based on their percentage of income earned…

So when the President and leaders on the left claim that they want “shared sacrifice” remind them of the above numbers (top 1% earns 20% of all income yet pays 38% of all federal income taxes), and then add this other fact: the bottom 50% of taxpayers pay only 3% of all federal income taxes.

The purpose of federal income taxes, as well as all other federal fees and taxes, is to fund the operation of the government, not to punish the successful to benefit the needy. If the government needs more money to fund its operation, fine, but don’t assault one group of Americans under cover of “shared sacrifice” – it’s more like “piling on”

Before joining the crowds calling for increased taxes on the wealthiest Americans, I think it is important to understand what the top 1% are currently paying in federal income taxes.

Sources:

taxfoundation.org: http://www.taxfoundation.org/news/show/250.html

irs.gov: SOI Tax Stats – for All Returns: Selected Income and Tax Items for FY 2008

thefreedictionary.com: pile on

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1 Comment »

  1. […] top 1% of income tax filers pays 38% of all income tax revenues, yet only account for 25% of all income – the bottom 47% of tax filers pay 0% of all federal taxes, and the bottom 50% of tax filers […]

    Pingback by President Obama’s Op-Ed in USA Today « Ken's Project Blog — July 22, 2011 @ 12:11 pm | Reply


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