Tax “The Rich”, It’s Only “Fair”, Right?
Oh, Robbie! If it weren’t for all the material you provide me I’d wish your interns had never figured out how to use Twitter. Let’s see what you’re up to now.
I’m not even going to bother fact-checking this because, honestly who cares if it’s true? I know, you’re implying that income inequality is somehow bad for the country. If inequality is the primary economic concern does that mean I should lie awake at night obsessing over the many people I know who make significantly more than I do? I’ll be honest, while I don’t obsess, I am a little jealous, but I try to get past it because envy doesn’t help anyone and I know that I have a roof over my head, enough to eat, and some extra money for entertainment and vacations. What this really means Robbie is that poverty, not inequality, is what our major concern should be.
I know, I know, if “the rich” would just pay their “fair” share you big government progressives could do so much more. We both know that the terms “rich” and “fair” are purposely vague so that it can apply to whoever you like. Now don’t blush because I caught you playing word games. We both know that’s what you do so let’s just move past it and look at the data. The breakdown of federal income taxes paid by different income groups in the U.S. is as follows:
Top 0.1%: This group, typically earning millions annually, pays around 25.7% of all federal income taxes
Top 1%: The top 1%, those earning above approximately $682,000, contribute 45.8% of federal income taxes
Top 10%: Those in the top 10%, earning over $169,800, pay about 76% of federal income taxes
Top 50%: The top half of earners contribute approximately 97.7% of the total federal income taxes.
Bottom 50%: In contrast, the bottom 50% of taxpayers, those earning less than about $46,600, pay only around 2.3% of federal income taxes.
We clearly have vastly different definitions of “fair” since I think this progressive system looks very unfair. No, you’re right, earnings aren’t wealth, and tax rules (which you guys came up with so don’t blame the player) allow the very rich to play their own games. So, let’s look at wealth instead:
Top 1%: Holds about 31% of total U.S. wealth and pays 45.8% of taxes.
Top 10% (90th to 99th percentiles): Own approximately 36% of wealth and pay 50.3% of taxes.
50th to 90th percentiles: Represent the middle class and hold 29% of total wealth and pay 21% of taxes.
Bottom 50%: Possess only around 2-3% of the nation's wealth and pay 2.3% of taxers
Honestly, it still looks to me as if the top 1% and 10% are more than pulling their weight.
All this talk of taxes makes me think we’ve forgotten something. What could that be? Oh, I know! There’s one other group that controls an even larger amount of US wealth than the 801 US billionaires. Can you guess who that is Robbie? Don’t be shy, I know you do. Yes, that’s right, it’s the government. While the top 801 US billionaires control $6.2 trillion in wealth, the U.S. federal budget for fiscal year 2024 is approximately $6.9 trillion.
Who controls that, Robbie? You’re a Rhodes Scholar so I know you know. Correct, the President and Congress. So, 536 people control more wealth than all the Billionaires in the United States. What’s my point? Well, my point is that maybe you big government types wouldn’t constantly be looking for ways to increase taxes if Congress took the word “budget” to mean a process where expenses are balanced against incomes instead of taking it to mean “a big pile of money that I get to spend on whatever I want.”
It’s funny isn’t it (stop laughing, I meant funny peculiar not funny ha, ha), that both Congress and I have budgets. Mine means I try not to spend more than I have. I do this because I’m not allowed to print my own money (a big no no) and because if I went to the bank and said “I don’t have enough money to fix my roof because I spend more than I earn, give me a loan” they’d laugh me out of the building.
Congress on the other hand doesn’t have that problem. Spend, spend, spend, and if you run out of money either print more or raise taxes. Congress isn’t asking for a loan so much as it’s robbing the bank. It’s not running a business so much as overseeing a protection racket. Taxpayers have two choices, pay what we’re told or take a chance and hope the IRS is about as competent as the DMV, Secret Service, and FEMA (hmmm, maybe tax evasion has better odds than I thought).
You are right about one thing though, the “super-rich” (hey, if you can make up terms so can I) do seem to enjoy benefits the rest of us don’t. Paying the best accountants means that the top 25 wealthiest Americans paid an average effective tax rate of just 3.4%. Let’s not forget though, Congress generously built in a lot of loopholes for them to use. Still, I’d like to see that tax rate closer to what the rest of us pay.
That said, before you create a new tax though (which will eventually apply to the rest of us like the AMT and which will have plenty of new loopholes), how about closing the existing loopholes? I get it, when the tax code and associated regulations exceed 75,000 pages it is much easier to add a new tax and a few more pages to that code than it is to go through it and fix the problems. You kind of made your bed on this one though, didn’t you?
Listen, I spoke to all the other taxpayers, and we get it, running a highly inefficient organization that wastes other people’s money is difficult and when the tax code and associated regulations, that you created, exceed 75,000 pages it is much easier to add a new tax and a few more pages to that code than it is to do the hard work and make the code “fairer.” Budgeting is tough and God knows government workers have it rougher than most people (🙄) but “fair” is “fair” Robbie, before you come asking for more money we’re going to need you to roll up your sleeves, sharpen your pencils and do a better job with the money we’ve already given you.
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Robbie no doubt sings the lyrics from the 1970s song, "If I Could Change the World". Like the vocalist, he no doubt yearns to, "Tax the rich, feed the poor, till there are no rich no more." Of course, Robbie believes that only certain of the rich should pay higher taxes. Raising taxes across the board would reduce donations from those who contribute to liberal causes. Dave Chappell made a telling comment several years ago when he quoted Donald Trump when debating Hillary Clinton. His words, paraphrased, "If you want me to pay more taxes, change the tax code but I know you won't because the people who support you take the same advantages that I do".
Members of Congress are all millionaires. It’s naive to think they’ll raise taxes on themselves.