The Tax Policy Center just published a report on the federal income taxes Americans paid in 2015 and the information is sobering.
Some key facts:
- More than 77 million households (43.6%) will pay no federal income tax
- 1/2 of these pay no tax as they have insufficient income
- The other 1/2 have sufficient deductions to require no income taxes
- The top .1% (1/10th of 1%) – 116,000 households – pay 20% of all income taxes
- The top 1% of households pay 44% of all income taxes
- The top 20% pay 87% of all income taxes
There are some things to double-hate about these facts and some to REALLY REALLY loathe entirely.
Firstly, I’m extremely critical of a political system that encourages everyone to vote that also includes a taxation system that almost half of the people do not participate in. That literally means that a huge swath of the population are influencing decisions in which they’ve no financial interest. Nothing is easier and more wasteful than spending OTHER people’s money.
A fair tax system would include dollars from every single person earning an income.
Secondly, despite the constant chorus from the left of “the rich need to pay their fair share,” the reality is that the top earners pay for more than their fair share. It is no less than a tyranny of the majority.
To be in the top 20% of household earnings requires about $90,000 and around $52,000 for individuals. No one can honestly call this income level “rich,” yet these folks pay almost 90% of the income taxes collected.
Two things need to happen for true fairness:
- A flat tax where all income is taxed at the same rate. If someone earns more, they pay more — just not a greater percentage BECAUSE they earn more.
- A government that spends less. Right now the leviathan is feeding on more income tax receipts than ever before – and still spending even more than that. It’s so very way past time for that to end.
Of all the issues swirling around the current political campaigns, economic growth is the engine that supplies the power. Whether it is immigration, defense, or anything else, productivity of the American people is the foundation. The income tax system is its cornerstone.
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