Everyone wants the rich to pay more taxes! It is the ongoing chant from the Obama administration and the progressive left. Obama wants the higher income taxpayers to “share the burden” to a greater extent. Warren Buffet feels that his tax burden should be higher. Mr. Buffet, just write a big check to the US Treasury if you feel guilty! Leave the rest of America alone! Let’s consider a couple of facts: first, the top 10% of taxpayers pay 70% of the federal income tax received; and, second, about 50% of wage earners pay zero federal income tax! So, how much more should the highest earners be expected to pay when 50% pay nothing? I guess if you ask the rich (other that Buffet), the answer is, “We pay enough already!” If you ask the 50% who pay nothing (many of whom are on the government dole), the answer is more, more, more!!! Overall, the top 50% virtually pay all the federal taxes collected! Simply stated, one-half of the country is supporting the other 50% of the country.
Obama wants to reform the tax code by increasing taxes for high income individuals and corporations, eliminate loop-holes (including the mortgage interest deduction that affects almost all homeowners), and eliminate subsidies for oil/gas/coal companies and farmers, to increase federal revenue so he can reduce the national debt! So, what is the answer? Is it acceptable that 50% get a pass on contributing to the costs of the federal government? I don’t think so! While controversial, a national sales tax (value-added, etc.) would require all consumers of goods and services to pay into the system. In that way, the burden would be partially shared by all Americans. Of course, the highest income earners would be spending the most money; therefore, they would pay much more that others. But, it would be fair!
Another sacred cow that Obama wants to kill is the “capital gains” tax to get those greedy Wall Street hedge fund managers! Just a bunch of fat cats, right?!? Would it surprise you that 52% of Americans own stock and thus benefit directly from lower capital gains and dividend taxes? Reducing the tax rate on dividends ushered in a huge jump in the number of companies paying out dividends. Dividend income is up nearly 50% since the 2003 tax cut! Who benefits? Probably you…..not just the Wall Street executives.
While the slogan, “tax the rich” is a seemingly easy position to support; but, a knowledgeable person will understand that it is little more than campaign rhetoric designed to pander to the growing divisions in America. Should our president be uniting us? Or dividing us?
P.S. What many Americans fear is the continuing wasteful spending in the federal government. If the progressive left had more tax dollars to spend, would it be spent expanding social programs (welfare, Medicaid, food stamps, etc.) and green energy boondoggles like Solyndra that cost taxpayers $500,000,000? Probably!!