CAN WE STOP WITH THE “Not Paying Their Fair Share” NONSENSE???


BLOG POST 4 - Fair Share

I realize that some who read this will vehemently disagree because they truly believe the evil, corrupt, and selfish rich are shafting everybody else and that the Republicans only care about the Rich, Super Rich, and Corporations.  I have contended, “Taxes have no fair share!”  That being said, the Office of Management and Budget released a report that states – “The Top 20% pay 95% of taxes and the Middle Class ‘Single Digits.’”   The hatred and distrust of those in the Top 20% might be more understandable if they were all Super Rich, but I will suggest that some of those who feel the RICH are not paying their fair share are themselves in the Top 20% and do not even realize it.  I wonder if that would change their view of who and who is not paying their FAIR SHARE?  I guess it depends on their ideological persuasion politically.

Mike Mulvaney, at Georgetown University, gave some incredibly revealing and enlightening numbers and the impact of the proposed tax cuts to the Middle Class.  The information he provided is worthy of examination and consideration.  In 2015, the Wall Street Journal reported that the Top 20% of income earners paid 84% of all federal taxes.  That is huge in itself but 95% is ASTOUNDING.

Mike Mulvaney said: “If you break the income tax universe into what we call quintiles, so equal sized 20 percent columns, the first two columns, the first quintile and the lower quintile, don’t pay any taxes at all. In fact, they net positive. We pay them when they file a tax return.  That middle quintile, which you might describe, some people do, as middle class, pays an effective rate in the low single digits. And all of the taxes are paid by folks in the top two quintiles, and that last quintile pays almost fully, 95 percent I think, of the taxes. 

People always ask all the time, ‘Why do you want to give a tax cut to the rich?’ Here’s the math. We have a progressive tax system, which means that if you make $1 million and I make $50,000, we both pay the exact same rate on the first, let’s say, $20,000. And then, from the next $20,000 up to my $50,000, and her next $20,000 to her next $50,000, we pay the same, I think it’s 12 percent of 15 percent, I can’t remember where the brackets are right now. And then she goes on to pay her higher rate on the stuff that she makes and I stop. 

Well, if you want to give me, the middle class, a cut, take my 15 percent rate down to say 10 percent, and that gives the middle class a cut. Guess who else benefits from that, she does. She pays that same rate on the way up the brackets.”

 His conclusion, “You could sit there and do nothing but lower the rates on the middle class, and all other things being equal, you’re giving the rich a tax cut.”

 Let’s examine the Top 20% briefly and in order to qualify for that tier of income earners, you must earn roughly $111,000 per year.  The factual data is that about 61 out of 100 U.S Households find themselves in that category.  Likewise, the data indicates that 39 out of 100 U.S. Households will find themselves in the Top 10% with earnings of roughly $153,000 per year.  Does that sound like the Super Rich or even the Rich to you?  I guess it depends on your economic condition and view of the world of finance and economics, but for most people, neither group qualifies as Rich or Super Rich.  We also discover that 5 out of 100 Households will be in the Top 1% of incomes which is roughly $360,000 per year.  Even that does not sound like the dastardly filthy rich we hear the Democrats (many of whom are Millionaires or Billionaires) castigate.  On the low end of the spectrum, about 20 out of 100 U.S. Households will fall into the poverty range of $23,850 per family of 4. 

I will be the first to say that I do not think a family of 4 with an income of less than $25,000 per year can afford to pay federal income taxes.  But, I also do not think that people in the Top 20% should be paying virtually ALL the federal taxes either.  I personally believe that this nation thrives and survives better if EVERYONE has skin in the game and I have long argued that the Federal Government should not be due more than God and God’s plan in the Bible begins with 10%.  I am a proponent of a Proportional Tax rather than a Progressive Tax.  The people who create jobs which helps all levels of society are the ones who now have money.  If we, as some Democrats and Establishment Republicans desire, tax the rich to the point they no longer invest or find it unappealing to invest WHO DOES THAT HURT THE MOST?  If they are Rich or Super Rich, they have money and do not have to earn more.  However, those on the other end of the spectrum MUST have jobs and a regular paycheck to survive and have any hope of climbing the ladder of success so they can become entrepreneurs.

The most recent revelations of corruption and partisanship in the Internal Revenue Service would be reason enough to oppose its continuation.  Moving from a Base Line Budgeting Process to a Zero-Based Budgeting Process would help reduce spending, reduce the deficit, and create a healthy condition in the Federal Government.  It would allow Congress to properly fund the Social Security Fund, that they and previous administrations bankrupted.  It would allow Congress to clean up the welfare system, work on eliminating waste in Medicare and Medicaid as well as every other government entity and department.  It would allow us to cease funding nations that sponsor or engage in terrorism.  It would allow us to see our economy move toward a much more robust condition and be good for EVERYONE.  That, in my view, is common sense but to those in Congress and the many bureaucracies of Washington, it is heretical.  WHY?  It strips from them the power to bribe and extort.  It strips from them the power to control.  It forces them to DO THEIR JOBS not build their networks, line their pockets, protect their position, and increase their power.  It would force them to become Citizen Representatives, not Professional Politicians.  Some of them, if not many of them, would find the position and task of being a Senator or Congressman/woman not as appealing as it has been heretofore and they would go home.  WHAT AN IDEA?  What a pleasant thought that they would serve a term or two and go home.

America, we can fix what ails our Republic but not without some austerity, commitment, dedication, effort, and prayers.   We have a daunting task ahead of us because we must change the culture of Washington, DC while those who perpetuate that culture control things.  We must remove them via the electoral process and it may take a very long time, but we can if we refuse to give up and inspire those following us to enter the battle and commit to the long-term struggle.

God bless you and God bless America!

 

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