Sunday, November 23, 2008

Taxing the Rich?

Think about it this way:

The average worker in the United States earns about $50,000 per year and pays around $7,000 per year in federal income taxes.  

Celebrities, exceptional athletes, or CEOs who earn, let's say, $25 million dollars per year probably pay around $5 million dollars in federal income tax.

Using the above assumptions it would take 714 average workers to fund the U. S. Treasury in an amount equal to one highly compensated person.

Washington, DC and legislators are naturally more interested in people who contribute most to the treasury.  This example makes it understandable why government and lawmakers pay close attention to wealthy people. Average folks matter most at elections when each person has equal value.  Talk of taxing the wealthy is code to secure votes from average and below average voters.  There aren't that many super wealthy people relative to the large number of all the rest.

Now consider individuals who earn $250,000 per year.  Those individuals probably pay around $50,000 in federal taxes or more than 7 times the average individual.  There are lots of individuals with earning power between the $250,000 and $25 million.  Even so, increasing their already high taxes, relative to the average taxpayer, will not fund our country out of debt.

Significant change is in our future.  Taxes may go down for 95 percent of taxpayers and up for the remaining 5 percent, but programs and benefits will be cut.  Get your mind ready to accept change.

Have a good week!


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