Last night, presidential candidate Barack Obama said he was only going to tax the top 5% of earners. So I thought I'd share with you some information about who pays taxes. From the National Taxpayers Union for the Tax Year 2006:
The top 1% threshold is $388,806 AGI and they pay 39.89% of all federal personal income tax.
The top 5% threshold is $153,542 AGI and they pay 60.14% of all federal personal income tax.
The top 10% threshold is $108,904 AGI and they pay 70.79% of all federal personal income tax.
The top 25% threshold is $64,702 AGI and they pay 86.27% of all federal personal income tax.
The top 50% threshold is $31,987 AGI and they pay 97.01% of all federal personal income tax.
The bottom 50% threshold is less than $31,987 AGI and they pay 2.99% of all federal personal income tax.
(Note: AGI is Adjusted Gross Income)
Since Democrats, and liberals in general, are all about fairness, how is it fair that the top 5% pay 60% of the taxes? Shouldn't we all be paying a 'fair' portion? If we were really being 'fair,' wouldn't they have to pay only 5% of the federal income taxes?
And do people actually understand that if you make more than $64,702, you're in the top 25% of taxpayers? With this threshold, most public employees are 'rich.' And those good factory workers, like at Jeep and Hydromatic - good UAW union jobs - are probably in that group, especially if there are two wage earners in the family. These are the people who are already paying the vast majority of the taxes. So is it fair to make them pay more so that people who make less than $31,987 can pay less than the 3% they're currently paying?
Of course, Obama and Sen. John McCain were asked how much you have to make to be rich - neither of them were very accurate when it comes to how the tax code defines 'rich.' But then, if they keep talking about the rich as people who make more than half a million a year, you'll keep supporting them, not realizing just how many of YOU actually end up footing the bill based upon the tax code.
Pay attention, people, because if those nasty Bush tax cuts expire, you can expect to pay more regardless of how much you make. A married couple making $60,000/year would see their tax bill go from about $9,000 up to $16,800. A single person making $30,000/year would go from $4,500 up to $8,400. But Obama, who wants to let those taxes expire, only wants to tax the 'rich.' I suppose that if you let tax cuts expire, you're not really raising taxes, even though the result is the same.
Don't be swayed by the words, especially when the speaker is counting upon your definition rather than the government's. Do the research yourself and make an informed decision.