I'm finding that many aren't informed about the degree of progressivity of our federal income tax structure. Many complainers feel that companies shouldn't get tax breaks and the rich should pay more. Maybe so, but it's useful to know what already exists. Some thoughts ...
1. On companies and "tax breaks": Private companies/businesses are who create value that results in more jobs, and more taxable income. NO OTHER ORGANIZATIONS DO THIS. ALL TAXES DERIVE FROM THE SUCCESS OF PRIVATE COMPANIES. When we tax those companies, we take away dollars that can be used to develop new products that lead to new jobs. Yes, charge businesses for "use taxes," their use of sewer, water, and protection ... but not for making money. Instead, tax the people on the money they received ... when they receive it.
2. On Progressivity, here are the 2009 income tax figures, provided by the Tax Policy Center:
The top 5% of earners (Over $212,000) paid 40% of all federal taxes.
The next 15% (Over $106,000) paid 28%.
THUS, the Top 20% paid 68% of all federal taxes.
The next 20% (Over $65,000) paid 19% of all federal taxes.
The next 20% (Over $35,000) paid 10% of all federal taxes.
The bottom 40% paid 3% of all federal taxes.
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Phil, Flat tax r' us! Minimize or eliminate deductions. I'd like to see some comparitive numbers though...percent of all earned incomes realized by the top 20%? Without the deductions and write-offs provided under the current tax program, how much different would taxes really be for those in the upper brackets? Take Care, Dave
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