Scary! – New IRS Data – Top 1% pay More Than Bottom 95% Combined!!
A new IRS report has been released today, and the redistribution results are somewhat shocking! In the report, released on heritage.org, the top 1% of all taxpayers paid over 40% of the taxes in the United States in 2007. What’s shocking is that the top 1% paid more than the bottom 95% of all taxpayers combined. (first time ever in history) This also means that 1.4 million taxpayers paid more into the system than 134 million other citizens within the country. – Not very fair?
These redistribution numbers are in light of additional tax increases that are being proposed by the Democrat’s in congress that would raise taxes on the top 1% by an additional 8%.
I guess to Democrat’s the wealthy will never pay enough, until all their income belongs to the men in government.
An excerpt from the Heritage article is below…
According to the IRS, the top 1 percent of taxpayers paid over 40 percent of all federal income taxes in 2007. That is a higher share than the bottom 95 percent of taxpayers combined! They paid just over 39 percent.
The top 1 percent, those earning over $410,000, consists of 1.4 million taxpayers, while the bottom 95 percent contains 134 million.
In 2000, before the 2001 and 2003 tax cuts that some claim disproportionately benefited the rich, the top 1 percent paid less than 38 percent of income taxes while the bottom 95 paid almost 44 percent. Since the tax cuts, the top 1 percent’s share increased over 2 percentage points while the bottom 95 percent’s share decreased 5 percentage points. Those that argue the tax cuts solely benefited the rich are mistaken.
President Obama plans to raise the top 2 marginal tax rates on those making over $250,000 a year, and Chairman Charlie Rangel (D-NY) wants to slap a 6 percent surtax on top of that to partially pay for a government take over the health care system. These tax hikes, in addition to damaging the already badly weakened economy, will further shift the burden of the income tax to the highest earners.
In contrast, the bottom 40% of taxpayers pays no income taxes on average. In fact, they get money from the tax code well above anything they paid in because of refundable credits. And President Obama’s Make Work Pay credit, passed as part of the stimulus, will increase the money redistribute to these non-taxpayers.
It’s a dangerous situation when a majority of voters can get services and benefits from the government for no cost because there is no incentive for them to limit the growth of government. President Obama’s and Chairman Rangel’s redistributive tax policies will further push the burden of income tax to high earners while giving more benefits to non-taxpayers. But as the IRS data show, the economy cannot afford anymore spreading the wealth around.
Heritage.org hit’s the nail on the head with the last paragraph in the article. What makes this data scary, (and dangerous) is that the majority of voters can push for services and increases in the size of the government at no cost to them. This means they have no concerns if the government increases to a size that is tyrannical and oppressive to the population! (In fact, this is exactly what will happen.)
Cheers Thinking Patriots,
Jason
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