In another of our economics-in-pictures series, we have the facts on who actually pays taxes in this nation and refutes the “fair share” mantra we hear so often from Obama and the Democrats. Since 2008, when Barry and the Democrats won the White House, they have administered over a train wreck of an economy that has been in a holding pattern for at least four years waiting for better times to appear on the horizon. This has been encouraged by Obama, as he is a firm believer in the Democrats’ ever-flourishing government “Money Tree” that provides for all wants from the uneducated or indifferent electorate. Democrats embrace this principal so wholeheartedly that it has been in their election playbook since the time of Roosevelt.
So all they can now do is propose one tax, spend, and give away program after another in a vain attempt to alleviate any economic pains that follow natural business cycles. Governance is simply not in the equation when there are votes to be bought and the Democrats hegemony is on the line. It makes no difference if these policies create or exacerbate and extend the recession; it is just a natural consequence of their economic malfeasance and abrogation of leadership, which is the hallmark of Democrats in general. Detroit, Michigan is a case study in the economic realities of their disastrous “tax the other guy” policies and perspective.
Case in point: the ever-harkening cry of Obama, Democrats, and the OWS crowd is that the so-called “rich” are not paying their fair share; so let us look at who actually pays taxes:
The above graph shows that individual working stiffs that include the “rich” that Obama is constantly droning on about pay 83% of all taxes consumed by the Federal Government. The United States now has the highest corporate taxes in the world (this should give some pleasure to the OSW crowd.) This is only stifling investment and growth in this country; corporations paid only 7.9% of all tax revenues.
The remaining 9.1% of revenue comes from customs duties, excise, estate, and gift taxes. It is starkly obvious that working people of all income brackets float the government’s revenue ship by the fruits of their labors. So now, let us look at how much each income bracket actually pays as a function of collected tax revenues:
Already, we have a picture that the rich are paying a lion’s share of all federal taxes; the top 1% is paying 37% of all income taxes, the greatest proportion of income taxes. Wonder what the 99% of the OWS crowd will say about this? Next group from the graph is the top 2% to 5% who pay another 22%; when the top 1% is included, these folks are paying 59% of all federal income taxes. We have not broken out of the top 10% yet, and the so-called “rich” are paying a huge share. If we factor in the remaining 5% to bring the nation’s top 10% of earners into the picture ,we have them paying another 12% for a total tax debt load of 71%.
The remaining 90% of the nation’s taxpayers are paying only 29% of the federal government’s voracious hunger for tax dollars.
Of that amount, 40% of the top-earning taxpayers are paying only 27% of all taxes to Uncle Sam with the bottom 50% paying only a pitiful 2%. While Obama, Democrats, Marxists, Socialists, and the OWS scream “tax the rich” and “fair share,” they literally “gave at the office.” They were working hard to provide for the majority of Americans a home; two cars; cable or satellite TV; several cell phones for themselves, their spouse, and children; a dog or cat or two; a decent income; and a standard of living unrivaled in the entire world.
The bottom 50% pay only 2% of federal income taxes. It should be mentioned that it is only the top earners in this tier that pay, so 48% to 49% of Americans are getting a “free ride” from Uncle Sam in the taxpaying department. Our next graph shows the progressive nature of our current tax structure and the shifting of tax responsibility onto the rich:
This is the way it stacks up for the so-called “rich” in this nation; they can expect to pay an inordinate proportion of the amount of taxes collected by the IRS as a function of amounts they earned to taxes actually paid. The smoothed curve shows how collection practices of current tax law works. What the graph illustrates is a comparable amount of income (17% of all money earned by the 1% compared to the 13% earned by the bottom 50%) and how the amounts are taxed at rates that are so disparate that it should be illegal.
What is not shown are the 48% to 49% that do not pay any taxes since their obligation has been shifted on to wealthy taxpayers already and how our progressive tax structure is abusing these wealthy taxpayers. If we look even deeper into this data, the top 1% pay an amount of taxes that is 18.5 times (or 1850%) greater than the entire bottom 50% of taxpayers, so how much is enough and what exactly should their fair share be, Barry?
(Note: to calculate this value, divide the 37%/2% and the value is 18.5, or to put it in another context, the Bottom 50% of the people pay income taxes at a rate that is only 5% of the Top 1%’s tax rate burden.)
Is it any wonder that so many Americans are renouncing their citizenship and fleeing this nation for more sunny climates that appreciate the ability of these hard-working individuals and the revenue they can give to their government coffers? This is in stark contrast to Senator Chuck Schumer’s senate bill to strip as much wealth and dignity from Facebook co-founder Eduardo Saverin as they can since he wants to leave this nation for better treatment by his own government.
Apparently, Chuck has not read his Constitution lately as Congress is forbidden to pass or entertain any legislation that creates a “Bill of Attainder.”
We have not heard of treatment like this since the Nazis implemented this type of confiscation and extortion of wealth from the Jews in Germany when they wanted to immigrate to more friendly nations that would show them religious tolerance, that is, when they were not grabbing their wealth anyway.
This may be comparable to the wretched treatment that the despicable Nazi regime perpetrated upon them as a people prior to the “final solution” they implemented years later. This is simply a ruling class of elitists that believes they have the power to decide that they can re-direct the fruits of the hard work of these citizens to better use than they can utilize themselves. Barry’s policies are simply bringing misery to everyone equally, regardless of income or status. The success of these entrepreneurs is all around us with the highest standard of living, economic choice, and freedom in the world. Obama and his elitist snobs think they can do better; they have simply failed to show any prowess or success in their economic delusions as they stifle and snuff out the desire for anyone to entertain becoming an honest entrepreneur.
What Obama has actually done is kill the “Goose that lays the Golden Egg” as these citizens see that they are being made the scapegoat of Obama and the Democrats’ lack of governance and leadership. Their economic policies are being laid bare like open wounds hemorrhaging public debt for all to see the abject failure of any kind of cohesive strategy for economic recovery other than the vilification of anyone they deem is standing in the way of their utopian pipe dreams. Meanwhile, our economy circles the drain of their imprudently created public debt.