Rich Pay Their Fair Share

Here's what the top 1% pays. They pay 37% of all income tax paid. At the same time they earn 17% of all income earned. Sounds like they pay their fair share to me. With 47% of all working Americans paying no income tax at all wonder if it becomes political strategy to push the tax burden even higher up the tax ladder to ensure a majority of voters have an incentive to vote for someone or party that will allow them to participate in society with no tax burden at all outside of retirement insurance tax (payroll tax).

Keep in mind dividend tax is paid on distributed corporate income which has already been taxed at the corporate rate. This results in double taxation. If a corporation pays the full corporate rate of 35% and then when remainder after tax income is passed on to to the shareholders and taxed at 15% rate --this results in IRS receiving 45% on the income. It may look like wealthy people pay low income tax because they file separate forms from the corporation they own.

Comments for Rich Pay Their Fair Share:

Of Straw Men and Tax Justice - by Mojo

Yes, their share of total income taxes paid has risen -- of course -- because their income and wealth has risen. KEY QUESTION: which has risen more, their share of the income and wealth or their share of the taxes paid? The answer to that question will take you closer to an understanding of tax justice (and fiscal responsibility).

Let's say we one day live in a country where the top 1% receive 95% of the income and wealth. Would it be unjust for them to pay all of the taxes in that situation? Would you insist that the 99% living on 5% of the income/wealth pay their "fair share"?

As to corporate taxation, almost no corporation, certainly none that are wealthy and can afford a tax attorney, pays a 35% tax rate. Introduce me to the idiot CEO who allows his company to pay that rate. You can't. So, that argument is what's known as a strawman.

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Corps Don't Pay Taxes; People Pay Taxes - by Anonymous

No corporaton pays taxes. No business pays taxes. Consumers pay them.

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Yea They Do - by mojo

That's baloney. Businesses have to compete. If taxes are raised on them, they cannot pass that on to consumers unless the market will bear the price increase. What really would happen is the rich corporations that can afford expensive tax planning will suddenly have to pay the same taxes that other, smaller, often struggling companies now pay. The rich company will not be able to pass on the tax increase because the increase will not affect the small, struggling company -- who can keep prices that same.

So, the rich company will have a choice, pass on the tax increase to consumers and lose market share, potentially going out business -- or -- cut the fat, like million dollar bonuses to executives. They'll opt for the latter of course.

What you really are doing is fighting for the wealthy to hold onto their unfair advantages. The GOP way, unfortunately.