Millionaires should pay more taxes

Little secret.

They do.

Not accurate to compare income taxes versus capital gains and then pronounce that millionaires are somehow paying a lower rate than the average US citizen.  Unless those were the only taxes that either were paying.  It’s just not.  Actually income taxes represent only a third (A THIRD!) of the taxes paid by Americans to the governement.  Were someone, say a president, to get out and imply that millionaires are somehow paying a lower rate, that person would be implying something that is a prevarication.  A lie.

What a surprise.

“For the entire universe of American taxpayers, the average tax rate is 11 percent of our AGI. The highest average tax rate paid by anyone earning under $100,000 is 8 percent. That shows how successful the myriad tax credits available to the “middle-class” have been in reducing their tax burdens.  By contrast, millionaires pay an average rate of 25 percent.”_source the Tax Foundation,  a Washington, D.C.-based think tank founded in 1937 that collects data and publishes research studies on tax policies at the federal and state levels

http://www.taxfoundation.org/blog/printer/27642.html

 

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About drrik

3rd career and 2nd childhood. Spends spare time repairing old things. Aspires to burn more gasoline, gunpowder, and ink in pursuit of slowing down. Child of the 60s and aspiring student of history. No desire to see us repeat the failed social experiments that keep failing for lack of human beings that meet the left wing standards and have to be killed off. Did engineering long enough to realize that very little is new and the wheel does not need to be reinvented.
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5 Responses to Millionaires should pay more taxes

  1. markmcinturf says:

    No…. the secret is that we don’t really know. Our tax information is private….. all we can do is look at the tax tables and see higher tax rates on higher GROSS TAXABLE INCOMES. How much anyone actually makes against how much he gets away with deferring/exempting and consequently what rate he truly pays in taxes AS A PERCENTAGE OF HIS TRUE INCOME is not information you or I can know. I will wager with you however that the average taxes actually paid by the millionaires across the country expressed as a percentage of their TRUE INCOME is no higher if not less than the average middle class wage earner.

  2. drrik says:

    You may be right. The Tax Foundation only compiles info FROM the IRS. So they only know what is reported, and what is being done that leaves a paper trail in the US. Doesn’t pick up the drug dealers. Doesn’t pick up the shadow economy, although most US millionaires are not running a US business on cash and carry basis. For now it doesn’t pick up the ebay and Amazon stuff although that is fixing to change. Still, not likely US millionaires there. What it also doesn’t pick up is the poeple that have gone Greek. In Greece the tax and regulatory burden has gotten so high that most of the populace runs a side business that is done word-of-mouth and cash only. Generally, in the US this is still probably folks who are mostly middle-class. What I can find on millionaires who are not being accounted for on the IRS rolls is the ones that are running businesses OUTSIDE the US that the IRS still wants a piece of. Folks that have set up a business in another country, may have foreign employees, and be paying all of that country’s taxes and local payoffs and bribes to the officials that are required in the other countries, but that the IRS still would like to claim 25-35% of the income of, because they still hold American citizenship. I think that the Tax Foundation’s figures and analysis of the IRS data is accurate, and applies enough to make accurate, in general statements.

  3. markmcinturf says:

    Couldn’t resist the urge to make a comment about the news today. Mitt Romney has been riddled lately about his taxes (will he make them public or nor, etc) and when asked again today what real tax rate he falls into on the 1040, Romney responded that he thought in recent years that it fell somewhere around 15%. *** Guess I can’t imagine anything that would declare me the winner of my little wager more profoundly. Imagine….. here’s Romney…. with income well into the multi millions and he’s able to defer and/or exempt so much of it that he pays a lousy 15% of his income in federal taxes. 15%!!!!!! Hell I’ve paid 15%!!!!!!! Now it’s still true that this example shows that the rich pay all the taxes that are collected. Of course they do….. they make (and have) all the damn money!!!!!!!!! I can’t imagine anyone thinking this situation isn’t criminal. Our so called progressive income tax is an absolute joke!

  4. drrikdrrik says:

    ‘Course, he did already pay taxes on it once BEFORE he had it to invest.

  5. markmcinturf says:

    Well yes of course…… The wager was that when it’s all said and done, I don’t think the rich man pays any more (IF NOT LESS) taxes than the average middle income wage earner WHEN EXPRESSED AS A PERCENTAGE OF THEIR COMPARATIVE REAL INCOMES.

    I’m not trying to say that I think Romney has done anything illegal – in fact I’m much more inclined to believe he simply took advantage (in a big way) of what our tax code allows. * The relevance is that just because we’re so stupid as to allow the letter of the tax code to trump the spirit of the tax code doesn’t make it right and certainly Romney’s case seems to bear me out. Just like activity with Bain Capital…… it just plain smells bad. ***Hard to refute the old adage….if it looks like a duck, smells like a duck….it is a ????

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