Diary

The Buffett Tax and the Big Lie About Taxes Paid By Millionaires and Billionaires

We have President Obama echoing the words of Warren Buffett about how millionaires and billionaires are “not paying their fair share” of the burden in the USA. Mr. Obama is demanding that we “ask those millionaires and billionaires to sacrifice along with the rest of the country” in order to get our fiscal house in order.

Red Staters already know that Washington DC speak means “ask” is really not asking for money from millionaires and billionaires. It is confiscating money from the most productive members of society.

It’s time for an honest look at what various groups DO pay. The AP, hardly a fan of the GOP, nor of conservatives in general, had this article published on 9-20:

http://news.yahoo.com/fact-check-rich-taxed-less-secretaries-070642868.html

Some excerpts:

[The data tell a different story. On average, the wealthiest people in America pay a lot more taxes than the middle class or the poor, according to private and government data. They pay at a higher rate, and as a group, they contribute a much larger share of the overall taxes collected by the federal government….]

[This year, households making more than $1 million will pay an average of 29.1 percent of their income in federal taxes, including income taxes and payroll taxes, according to the Tax Policy Center, a Washington think tank.]

[Lower-income households will pay less. For example, households making between $40,000 and $50,000 will pay an average of 12.5 percent of their income in federal taxes. Households making between $20,000 and $30,000 will pay 5.7 percent.]

Note that the above figures include payroll taxes (AKA: FICA).

The “millionaires” pay taxes at a rate which is over 5 times THE RATE that the $20,000 to $30,000 income earner pays.

Perhaps looking at this another way will put this into perspective. Let’s take a single tax payer making $1.2 million per year against 40 individuals making $30,000 per year.

Both have an income of $1.2 million.

The individual making $1.2 million is paying $349,200 in taxes.

The group making the same $1.2 million is paying $68,400 in taxes.

We don’t need higher tax rates on the person making $1.2 million. We need an economy that generates more people making $1.2 million and the deficit will disappear.