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Tax On Rich Would Pay For 1 Week Of Gov’t

From CNN’s Money.Com:

Tax hike on the rich would impact just 3% of taxpayers

By Blake Ellis August 11, 2011

NEW YORK (CNNMoney) — As the government looks for ways to climb out of its massive hole of debt, all eyes are on the rich.

President Obama and many of his fellow Democrats continue to call for higher taxes on the wealthy. And, according to results of a CNN/ORC International Poll released Wednesday, many Americans agree that it’s the only way the country can dig itself out of its current economic mess.

About 63% of the 1,008 people interviewed over the phone said they think the new bipartisan committee in charge of deficit reduction (required under the recent debt ceiling agreement) should raise taxes on higher-income Americans and businesses.

Unfortunately, class warfare works every time it’s tried.

But just how many of these "rich people" are there? And are there enough of them for a tax increase to really make a dent in the United State’s trillions of dollars in debt?

President Obama has defined the nation’s wealthy as those who make $200,000 or more a year. According to a recent report from the Internal Revenue Service, that leaves out about 97% of the tax-paying population.

The report, which provides a complete breakdown and analysis of returns for the 2009 tax year, found that only a mere 3% of tax returns were filed by people earning a gross adjusted income of $200,000 or more.

Americans earning $1 million or more were even more rare, comprising just 0.2% of total tax filers and accounting for a mere 236,883 of the 140 million tax returns received in 2009.

The wealthiest taxpayers — those earning $10 million or more in adjusted gross income — are even less prevalent. There were only 8,274 people belonging to that elite club, according the IRS

And we should always bear in mind that whenever Mr. Obama and the Democrats say "millionaires and billionaires" they mean anyone making over $200,000 a year.

Yet, even though these high-income earners are a minority, Obama says the proposed tax increases would boost revenue by $750 billion over a decade.

It’s not quite the multi-trillion figure the U.S. needs to pay off the deficit, but for many of those who responded to the CNN/ORC International poll it’s evidently a good enough start.

In fact, the government currently spends more than $10 billion dollars a day. $4 billion of that is borrowed. Even using Mr. Obama’s fantasy numbers, raising taxes on the rich would only net an increase of $75 billion dollars a year. Which would only pay for one week of government spending.

However, it would kill jobs, and stifle any economic expansion. Which is the only way we will ever get out from under this mountain of debt.

But maybe that is the idea.

This article was posted by Steve on Thursday, August 11th, 2011. Comments are currently closed.

3 Responses to “Tax On Rich Would Pay For 1 Week Of Gov’t”

  1. proreason says:

    My observation is that the number of rich people seems to be getting smaller.


    I can’t help but wonder why. Maybe they decided to not be so greedy?

    • Petronius says:

      Maybe they are keeping a low profile.

      The old money French and Italians learned how to do this ages ago, based upon their long experience with the Marxists.

  2. mr_bill says:

    What would have the greater positive economic impact over the next ten years: Private citizens spending, saving, and investing that $750 billion or government confiscating it and flushing it down the drain we call government? A dollar spent by government rarely produces anywhere near what that same dollar produces when it is spent in the private sector. That is the problem with government. It’s inefficient (in the economic sense of the word), wasteful, cumbersome, and ignorant.

    The political class has become far to accustomed to the large amounts of our money to do with as they please, both in government and in their “charmed” lives as American royalty. They treat it as “found money’ rather than the product of labor. They have no problems spending $17,000 on flowers or donuts or liquor for a plane trip, charging it to the American people and expecting us to be ok with it. Their privileged lives are financed on our backs. After a lifetime of entitlement thinking, so many other Americans feel just as the political class feels: “it’s owed to me because [insert social justice reasoning here].” All the while, they mock and deride those of us who believe we are owed only what we have earned through our labors and are sick and tired of having to give it away to those who have contributed nothing to earn it. We are chastised for being industrious by those who want the benefits we have earned without having to exert the energy to obtain it.

    If government were to be financially starved by the voters/taxpayers, politicians would start evaluating each spending decision as it should be evaluated. Spending would be prioritized and only the most valuable expenditures would be funded, if government funding were limited. As it stands, the political class knows it can tax and borrow this country into oblivion to ensure they continue to lead their lives as American Royalty and that is easier for the political class than actually standing up and doing the right thing. The only decision they force themselves to make now is whether to print more money, borrow it, or tax us for it. Until we force the political class to make different decisions, we will continue to get what we have now.

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