aircooled wrote:
poopshovel wrote:
Almost as brilliant as raising taxes on job creators in an effort to "create jobs!"
I am going to jump on this one. This statement always bugged me (and not because it is a pundit standard) because it doesn't really make sense to me.
First of all, let me state, I don't like the idea of raising taxes in general when the government is currently so inefficient / misguided.
But, raising taxes on PEOPLE who make over (let's say) $200,000. I really don't see this affecting job CREATION. People that make that kind of money are generally involved in successful businesses certainly. But unless they are idiots, the keep their business money and personal money SEPARATE. So letting them keep less money does not cost their business money.
Also, correct me if I am wrong, but business expenses are deductible from business income (lowering taxes). So basically the more you spend on your business, the less tax you pay (I don't know if payroll is considered a business expense though). So, in a way, even if business taxes were raised, more taxes encourages business spending (not that I think this is a generally viable economic plan).
One comment I heard on this used as an example was a dentist who was worried he would not be able to hire another person. Well, come on now, if you are making over $200,000 a year in a personally owned business (I don't know if dentist incorporate their businesses in some way) you are making pretty damn good money, and maybe giving up a $20,000-$30,000 to hire someone to help you out (not necessarily bringing in more business to cover the costs) is not a huge deal.
Tell me why I am wrong, please. What am I missing here?
according to a report I read in the Christian Science Monitor ( yeah I realize that they are totally unbiased )
I had been hearing these statistics for yrs and just recently ran across this
[one more thing to consider when we talk about raising taxes on business is that business DON'T pay taxes.... every penny they pay out in taxes are passed on to the consumer eventually ... I know it's radical, but I say lower taxes on business.... more profit , some will lower prices to try to garner a larger % of the consumer $ .... so more spending ( the companies that try to keep the increased profits would loose market share.... ) anyway that's my take on business taxes]
To put it in numbers, according to the analysis, the top 1 percent of earners account for 20.3 percent of total personal income in the United States and pay 21.5 percent of all federal and state taxes. The middle 20 percent of households earn 11.6 percent of US income and pay 10.3 percent of taxes. The lowest 20 percent account for just 3.5 percent of income, and pay 2 percent of all taxes.
The numbers were reported by Citizens for Tax Justice, a research group that supports progressive tax rates, and drawn from calculations by the Institute on Taxation and Economic Policy.
Note that these numbers look at the broad mix of US taxes, not just income taxes. Federal gas taxes, payroll taxes, and state sales taxes offset the progressive tilts of the income tax and estate tax.
The report also sheds light from another angle, showing the percentage of income that each group pays in total taxes. Lower-income groups pay a smaller – but still significant – share of their incomes in taxes. For example, the lowest fifth of earners pay, on average, 16 percent of their income in taxes. At the higher end of the scale, the top fifth pay a bit more than 30 percent of their income in taxes, not much higher than the next fifth down.
And within that top tier, the top 1 percent pay 30 percent of their income in taxes, which is actually a bit less than the 31 percent of income that the next 9 percent of taxpayers pay.
Another research group, the Tax Foundation, which supports low tax rates, offers an analysis of the federal income tax in isolation. According to the Tax Foundation, the top 1 percent of earners account for 20 percent of "adjusted gross income" (an Internal Revenue Service measure) and pay 38 percent of income taxes. That shows how the income tax itself is progressive.
Other taxes often regressive
The contrast between this number and the tally by Citizens for Tax Justice also shows how other taxes levied in the US are often regressive in their impact on different income groups.
The current structure of tax brackets has rates that start at 10 percent of income at the low end and rise to 35 percent for the highest earners. In the middle are brackets of 15, 25, 28, and 33 percent. That top bracket doesn't mean the rich pay 35 percent of their adjusted gross income in taxes. Deductions and other factors lower their effective rate to 23 percent of income, the Tax Foundation reckons.
For comparison, the average tax rate for all taxpayers is 12 percent of adjusted income.
Of course, politicians and voters will have different views on what these numbers mean – what tax system is fair and optimal. And tax rates are just part of a larger policy puzzle that also entails thinking about the right level of federal spending and what kind of taxes are best for the economy and jobs. But the reports give an important benchmark of how much taxpayers are contributing now.