I’ll make this brief because I know most of you can’t take politics, taxes, and math all in the same post.
The basic premise of the Buffett Rule is that anyone with an income over $1-million should pay at least 30% of their income in taxes just like people in the middle class.
Here’s the probably, people in the “middle class” don’t pay at least 30% of their income in taxes. The middle earners families, earning between roughly $30,000 and $65,000 only pay about 3.5% of their income in federal income tax after exemptions and deductions. If you add in their employers payroll tax contribution its still under 14%.
So where did the 30% come from?
I think its mass-jeolousy. People in this country once admired success and achievement, but now seem to look upon it with distaste. There seems to be a public need to “get back” at those rich fuckers.
There are probably some good reasons for people to feel this way; baseball player make more in one game than most people make a year, rappers drive cars that cost more than the middle earners houses, bankers trick poor people into loans they can’t afford and investment brokers lied about retirement accounts performance to get you to invest more, but I don’t know that upping their taxes is going to make a difference in their attitude or lifestyles.
Or in the federal deficit.
The Millioniare Tax will raise, over 10 years, about $47-billion after the Bush tax cuts expire. That’s less than 1% of the governments budget shortfall, and essentially fiscally meaningless.
Its only not going to little to no impact on the federal financial mess, its will have little impact on the millionaires lives in generally. The average increase in tax is about $170,000 on about 116,000 people (yes only 116,000 people will be affected by this new tax), and they all have plenty of money sitting in the bank not drawing interest or being invested. So the overall economic impact will be like farting in a tornado.
Lets think about that 116,000 number again. All this talk, all this political debate, all this energy spent by people we pay to represent us is being expended on taxing 116,000 people in a country of over 300 million.
Seems like a waste from every angle to me.
Not that I’m for tax inequality. I’m certainly not. I think EVERYONE SHOULD PAY THE SAME PERCENTAGE OF THEIR INCOME IN TAX. I think the use of the words “same percentage” is practically the definition of equality isn’t it? No deductions, to credits, no loophole, just a simple FLAT TAX on earning of any kind.
With all due respect,