An analysis of the data on the proposed Democratic tax plan shows that it would have to top 30% of all U.S. income earners paying almost all of the income taxes.
The top 30% of U.S. income earners begins at $68,400/year!
There are a number of things interesting about all this, the first being that G W Bush’s across-the-board income tax rate cuts not only had income tax revenues skyrocketing in their wake, but actually increased the percentage of taxes the highest income earners paid!
In 2007 the top 5% of income earners in America paid well over half of all income taxes (57%) even though they only earned only 33% of the total income. The top 1% of U.S. income earners took in 19% of the total or annual aggregate income but paid 37% of all income taxes.
Way back in 2004, economist Robert Rector noted that “The Census income distribution figures are the foundation of most class-warfare rhetoric. On the surface, these figures show a high level of inequality: The top fifth of households have $14.30 of income for every $1.00 at the bottom.
The top 30% of U.S. income earners begins at $68,400/year!
There are a number of things interesting about all this, the first being that G W Bush’s across-the-board income tax rate cuts not only had income tax revenues skyrocketing in their wake, but actually increased the percentage of taxes the highest income earners paid!
In 2007 the top 5% of income earners in America paid well over half of all income taxes (57%) even though they only earned only 33% of the total income. The top 1% of U.S. income earners took in 19% of the total or annual aggregate income but paid 37% of all income taxes.
Way back in 2004, economist Robert Rector noted that “The Census income distribution figures are the foundation of most class-warfare rhetoric. On the surface, these figures show a high level of inequality: The top fifth of households have $14.30 of income for every $1.00 at the bottom.
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However, these figures are flawed by the exclusion of taxes and social safety net spending and by the fact that the "fifths" do not contain equal numbers of people. Adjustment for these factors radically alters the picture of income distribution: The top fifth of the population has $4.21 of income for every $1.00 at the bottom.
“The remaining inequality in society is heavily influenced by the lack of work at the bottom. If working-age adults in the lower quintiles worked as much as their higher-income counterparts, the income disparity of the top to the bottom quintiles would fall to $2.91 to $1.00.”
“Still, the top fifth of U.S. households (with incomes above $84,000) remain perennial targets of class-warfare enmity. These families, however, perform a third of all labor in the economy. They contain the best educated and most productive workers, and they provide a disproportionate share of the investment needed to create jobs and spur economic growth. Nearly all are married-couple families, many with two or more earners. Far from shirking the tax burden, these families pay 82.5 percent of total federal income taxes and two-thirds of federal taxes overall. By contrast, the bottom quintile pays 1.1 percent of total federal taxes.”
Moreover, while some of the disparity in income is due to the fact that some skills are simply far more valuable than others, which is why a surgeon earns many times what a schoolteacher does, along with the fact that the top fifth of taxpayers do one third of all the work, a large bulk of the income disparity is due to the wide disparities in the cost of living in various areas across the country.
It simply costs a LOT more to live in places like the D.C. metro area, the New York metropolitan area, the Boston hub, San Francisco, Los Angeles, Chicago, etc. than it does to live in places like southern and western Virginia, South Dakota, northern Nevada, etc.
What the Democrat’s new tax plan would do would be a boom to those living in low cost of living locales, while punishing those working in the larger, costlier urban areas.
This will be a boom to those mostly reliably "Red" low cost of living locales and to Conservatives and possibly the GOP (so long as the Conservative agenda controls that Party) because (1) those rural voters, while happily taking the tax cut, will NEVER support the “godless liberal agenda” sadly associated with the Democratic Party and (2) many of those moderates and independents in those very Blue urban areas could easily be turned Republican once they suffer enough under the liberal’s burden.
So long as they just weakly oppose the Democratic tax plan, there’s really no downside in all this for them. They can just sit back and reap the coming wave of taxpayer resentment that’s sure to come.
However, these figures are flawed by the exclusion of taxes and social safety net spending and by the fact that the "fifths" do not contain equal numbers of people. Adjustment for these factors radically alters the picture of income distribution: The top fifth of the population has $4.21 of income for every $1.00 at the bottom.
“The remaining inequality in society is heavily influenced by the lack of work at the bottom. If working-age adults in the lower quintiles worked as much as their higher-income counterparts, the income disparity of the top to the bottom quintiles would fall to $2.91 to $1.00.”
“Still, the top fifth of U.S. households (with incomes above $84,000) remain perennial targets of class-warfare enmity. These families, however, perform a third of all labor in the economy. They contain the best educated and most productive workers, and they provide a disproportionate share of the investment needed to create jobs and spur economic growth. Nearly all are married-couple families, many with two or more earners. Far from shirking the tax burden, these families pay 82.5 percent of total federal income taxes and two-thirds of federal taxes overall. By contrast, the bottom quintile pays 1.1 percent of total federal taxes.”
Moreover, while some of the disparity in income is due to the fact that some skills are simply far more valuable than others, which is why a surgeon earns many times what a schoolteacher does, along with the fact that the top fifth of taxpayers do one third of all the work, a large bulk of the income disparity is due to the wide disparities in the cost of living in various areas across the country.
It simply costs a LOT more to live in places like the D.C. metro area, the New York metropolitan area, the Boston hub, San Francisco, Los Angeles, Chicago, etc. than it does to live in places like southern and western Virginia, South Dakota, northern Nevada, etc.
What the Democrat’s new tax plan would do would be a boom to those living in low cost of living locales, while punishing those working in the larger, costlier urban areas.
This will be a boom to those mostly reliably "Red" low cost of living locales and to Conservatives and possibly the GOP (so long as the Conservative agenda controls that Party) because (1) those rural voters, while happily taking the tax cut, will NEVER support the “godless liberal agenda” sadly associated with the Democratic Party and (2) many of those moderates and independents in those very Blue urban areas could easily be turned Republican once they suffer enough under the liberal’s burden.
So long as they just weakly oppose the Democratic tax plan, there’s really no downside in all this for them. They can just sit back and reap the coming wave of taxpayer resentment that’s sure to come.