Jack21222
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Oltz said:For the record no rational person says we should not have a progressive tax structure. That being said any rational person should be able to tell you what percent of the population should bear what burden of taxes. The US has the largest ratio of tax burden to % wealth controlled out of all developed nations. http://www.irs.gov/taxstats/indtaxstats/article/0,,id=133521,00.html("Individual Income Tax Returns with Positive Adjusted Gross Income (AGI) Returns Classified by Tax Percentile")
I.e in 2009 the top 10% of earners had Adjusted Gross incomes above $112,124.00 all people with incomes above that controlled a total of 43.2% of national AGI but that same group paid 70.5% of the income taxes received by the government.
By the way the 1% control 16.9% of AGI and pay 36.7% of taxes this is AGI so it includes cap gains and dividends as well as all deductions. In 2009 the top 1% was incomes above $343,927.00 AGI
The average tax rate for the 1% bracket was 24.01 % versus 18.05 % for the top 10% and 1.85 % for the bottom 50%
In other words the bottom 90% control 56.8% of the wealth and pay 29.5% of the income tax. Some would say that "fair" tax brackets are based on your share of income.
The reason the top 1% and the top 10% pay such a large percentage of the taxes in the country is because they are so fantastically wealthy. Forget making a million dollars a year. There are people making HUNDREDS of millions of dollars a year. They make in one year what most of us can only hope to make in a dozen lifetimes.
This is why "percent of the total national tax" is an irrelevant figure. Even if you had an actual regressive tax, with lower incomes paying a higher percentage, you could still end up with a situation where the top 1% pays FAR MORE than 1% of the taxes.
I haven't verified this number, but I'll take your number at face value, that the top 1% pays on average 24.01% of their income. If the top 1% paid, say, 26% of their income instead, it would have a far smaller effect on them than if you bumped up the bottom 50% to say 3%.
If you support a balanced budget, in my opinion, you must also support higher taxes, particularly on the only group of people who can afford higher taxes. You cannot cut enough spending without causing economic catastrophe to balance the budget. It must come from a combination of spending cuts and tax increases. Proposing tax cuts, particularly tax cuts only on the wealthy, while cutting government benefits on the poor, and still not balancing the budget... that's just silly. And that's Romney.