Frequently you will see a letter to the editor or some pundit on television calling upon the rich and wealthy to pay their “fair share”. But what does this really mean?
As far as mere numbers, the wealthy already pay more than their fair share. According to the Heritage Foundation, the top 20 percent income earners paid 81.2 percent of the incomes taxes the Federal government received. This took place after the Bush tax cuts.
Translation, if the top 20 percent died or simply decided to take a vow of poverty, the Federal government would lose over 80 percent of the income taxes it collects.
Think about it. What would happen if we took the progressive income tax strategy to paying wages. If you work up to 30 hours a week, you earn $10 an hour. Work up to 40 hours, the additional hours earns you $8 an hour. Work up to 50 hours, the additional hours earns you $6 an hour. And more than 50 hours, those additional hours you receive nothing.
Who would work more than 30 hours? You would get a second job to maintain the $10 per hour pay. The rich make money by effort, not magic. They work hard for it and if we tax them at much higher rates, they will either stop producing or move to countries like Russia, where income tax is a flat 13 percent.
Think of the local medical surgical facility making more than $250,000. What if a surgeon is making so much money but being taxed more, feels no guilty in cutting back on the number of surgeries he does, and taking Friday off to play more golf? Can your heart surgery or brain surgery put up with a doctor taking more vacation days to avoid taxes? These are the sort of questions the left wing idiots fail to ask but your life is on the line because they want to tax the rich “more”.
If America wants to prosper, create a 5 percent flat tax with no deductions on incomes up to the first $75,000 earned with further earnings being tax free. This will encourage everyone to become wealthy and reduce dependency on government. Liberals will scream it is regressive, but they never complain about the Social Security tax which is a flat tax made regressive by a cap at about 113 thousand dollars. Also, the same “tax the rich” crowd are fine with sending Social Security checks to millionaires and billionaires.