Darned straight! The rich in this country pay far more than their fair share. And not only does bottom 47% of taxpayers pay no federal income tax, but the bottom 40% GET MONEY BACK! That goes right along in consistency with a prior post of mine: 60 Minutes/Vanity Fair Poll: 50% of Americans that don't pay taxes thinks "rich" people ought to pay more, even though top 1% pay more than bottom 95%
Note that the bottom 50% pay almost no taxes, while the top 5% pay about 60% of the federal tax bill. I agree with one thing - this isn't fair. But I think it is the rich that are paying too much, only to be sneered at by those that pay nothing at all and get OUR money back from the government. It's now gotten so bad, so unfair, that the top 1% pay more in federal taxes than the bottom 95%:
The rich are paying far more than their fair share, and instead of being thanked are demonized by Obama and their ilk. Dave Ramsey is right - Dick Durbin and those of his mindset are thieves. In addition, all data clearly shows that conservatives and the evil rich give far more of their money to charity than liberals. Liberals are very generous... with other people's money. But not their own. They are the true scrooges. With all of that as a backdrop, from Instapundit:EXPLODING A TAX MYTH: A 2008 OECD study of leading economies found that ‘taxation is most progressively distributed in the United States.’ More so than Sweden or France. The problem in the United States is that too many people vote, but don’t pay income taxes.And from Star Parker: Taxing the wealthy is just a sign of envy. The Wall Street Journal also ran this great piece: Taxes and the Top Percentile Myth
...Arguments for these retaliatory tax penalties invariably begin with estimates by economists Thomas Piketty of the Paris School of Economics and Emmanuel Saez of U.C. Berkeley that the wealthiest 1% of U.S. households now take home more than 20% of all household income.The solution of course is an overhaul of the tax system such that everyone has some skin in the game. And our own Dave Camp has the plan. From George Will: Dave Camp's plan: Taxes made simple
This estimate suffers two obvious and fatal flaws. The first is that the "more than 20%" figure does not refer to "take home" income at all. It refers to income before taxes (including capital gains) as a share of income before transfers. Such figures tell us nothing about whether the top percentile pays too much or too little in income taxes.
In The Journal of Economic Perspectives (Winter 2007), Messrs. Piketty and Saez estimated that "the upper 1% of the income distribution earned 19.6% of total income before tax [in 2004], and paid 41% of the individual federal income tax." No other major country is so dependent on so few taxpayers.
A 2008 study of 24 leading economies by the Organization of Economic Cooperation and Development (OECD) concludes that, "Taxation is most progressively distributed in the United States, probably reflecting the greater role played there by refundable tax credits, such as the Earned Income Tax Credit and the Child Tax Credit. . . . Taxes tend to be least progressive in the Nordic countries (notably, Sweden), France and Switzerland."
The OECD study—titled "Growing Unequal?"—also found that the ratio of taxes paid to income received by the top 10% was by far the highest in the U.S., at 1.35, compared to 1.1 for France, 1.07 for Germany, 1.01 for Japan and 1.0 for Sweden (i.e., the top decile's share of Swedish taxes is the same as their share of income).
Many parents have heard FICA Screams. Indignant children, holding in trembling hands their first paychecks, demand to know what FICA is and why it is feasting on their pay.I recall a commercial that I cannot seem to find on YouTube or elsewhere where a teenager opens his first paycheck and exclaims "Who's FICA? Why's he getting all my money?"
FICA (the Federal Insurance Contributions Act tax) is government compassion, expressed numerically: It is the welfare state; it funds Social Security and Medicare. Sometimes it makes young people into conservatives.
Dave Camp was 14, working for his father's garage in central Michigan, when he made the acquaintance of FICA. Now 57 and about to begin his 11th term in Congress, he will chair the House Ways and Means Committee, where he will try to implement the implications of his complaint that "the tax code is 10 times longer than the Bible, without the good news."My recommendation would be to scrap income tax altogether and go with a consumption tax only, also known as the "fair tax." Of course, that would take all the graft out of the political arena. Politicians simply cannot do without that.
His aim is "fundamental" tax reform, understood the usual way - broadening the base (eliminating loopholes) to make lower rates possible. He would like a top rate of 25 percent - three points lower than Ronald Reagan achieved in 1986, with what proved to be perishable simplification.
In George W. Bush's 2004 speech to the Republican convention, he denounced the tax code as "a complicated mess" that annually requires "6 billion hours of paperwork" - now estimated at 7.6 billion. He vowed to "simplify" it. The audience cheered. Then he promised new complexities. There would be "opportunity zones" - tax relief for depressed areas - and a tax credit to encourage businesses to establish health savings accounts. The audience cheered.
UPDATE: Linked by Instapundit! Thank you!
UPDATE #2: A FICA scene from the comments:
I recall an actual commercial that had something similar but was nor from the show Friends. But pretty much the same reaction.
UPDATE #3: Another similar FICA scene from That 70's Show. It occurs here at the 2:17 mark (thanks from the comments!)
Still not the one I recall, but again pretty much the same reaction.





The commercial that you cannot find was really a segment in an episode of the TV show "Friends". You can see it here:
ReplyDeletehttp://www.youtube.com/watch?v=whf3S85q0bk
10% of 100 = 10;
ReplyDelete10% of 1,000 = 100;
OH MY GOD, SOMEONE WHO BUYS A $1,000 TV IS PAYING TEN TIMES THE SALES TAX OF SOMEONE WHO BUYS A $100 TV!! UNFAIR!!
Great post! I'm pretty sure your "Who's FICA and why is he getting all my money" quote is from "Friends".
ReplyDeleteGood read but frustrating.... Anyway, the quote about FICA is from "That 70's Show." http://www.youtube.com/watch?v=vMLK67t_zcQ&feature=related The quote starts at 2:17
ReplyDeleteFor the TV example above- it's probably pointless to point this out, but obviously they are actually paying the same amount, proportionately. For the analogy to hold, the purchaser of the $100 TV pays $10 and the purchaser of the $1000 TV pays $500 or more.
ReplyDeleteNo other country imposes an income tax on expatriates. I suspect a relation.
ReplyDeleteThis also puts the lie to the notion that any tax break is "giving money to the rich". If the point of taxation is to maximize gov't revenue, we would tax the poor at a very high rate, because there are so many of them. And if that is not fair, then it's also not really fair to take so much from the rich. The only fair approach is a flat tax.
ReplyDeleteYour graph shows the percentage of personal income tax paid by AGI. However, FICA and other payroll taxes are not included in that number. FICA is not an insignificant sum as those clips indicate. Payroll taxes, represent 900 billion dollars, about 80% of what is collected with the personal income taxes.
ReplyDeleteSo, it is important to realize that while the bottom 47% aren't paying income taxes, they are paying payroll taxes. FICA for instance is capped at the first $106,800 of income. Furthermore, if those top 1% are getting income from investments, they aren't paying FICA at all.
Anon @ 10:31
ReplyDeleteDo you really not understand the difference between sales and income taxes? Buying a TV is a completley voluntary act. If you don't want to pay $100 in sales tax on a $1,000 TV, either buy a cheaper TV or just don't buy at all. Your choice. However, if you try to "un-volunteer" from paying your income taxes it won't be long before men with guns show up and take your money and take you off to prison.
Anon @11:16 has the math right.
Taxing the rich has nothing to do with fairness. Democrats rob us through the ballot box, and they go after the rich for the same reason thieves go after the rich, because the rich have the money and the thieves want the money.
ReplyDeleteLee Doren does a pretty good job of conveying the class warfare idea here;
ReplyDeletehttp://www.youtube.com/user/HowTheWorldWorks#p/u/1/Xj7nRc3_EG0
You keep telling me we need to cut taxes, and now that the taxes have been cut so low that 47% of the population doesn't have to pay any at all, now you are claiming that the taxes are to low. Make up your mind.
ReplyDeleteOh, and did you notice that only 14% of the population is at or below poverty level this year? Woot! It is a banner year, or something.
These people are playing with fire and are too damn dumb to realize it. When class warfare truly starts, the current political class will be the first to get the Guillotine. Just ask Robespierre how that worked out for him. Revolutions ALWAYS murder their own.
ReplyDeleteSo, the socialist Swedish economic model, the one Republicans most love to hate, is actually the fairest. Why are we not adopting it then?
ReplyDeleteWait, so how much income does that bottom 47% actually have????
ReplyDeleteI see a bunch of talk of percentages, and numbers, but it's so abstract, let's get with real dollars for once.