Is The Goal To Solve Problems Or To Punish The Rich?

The Hill posted an article today about the budget proposal expected to come from President Obama in the near future. One aspect of the budget will be to limit how much ‘the rich’ will be able to keep in their individual retirement accounts.

The Obama Administration says that this proposal will add ‘fairness’ to the tax code. The provision is expected to raise $9 billion in ten years. At this point, I would like to point out that the current budget deficit is approximately $16 trillion dollars, and the projected annual deficit for 2013 will probably be in the neighborhood of $1 trillion dollars.

Let’s look at this concept of ‘fairness’ for a moment. How is it fair to continue to take money away from people who earn it and give it to people who don’t? How is it fair to punish someone who has worked hard and been successful for their efforts and success? Who has decided that we need ‘fairness?’ In 2009, the top 1% of earners paid 36.73 percent of the taxes (according to the National Taxpayers Union). How is that fair?

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As You Hear The Debate On Raising Taxes…

As we approach the fiscal cliff put into place by Congress and the President, we will hear a lot about the need to increase taxes to balance the budget. We will also hear that the ‘rich’ are not paying their fair share.

First of all, this is how the tax code currently works (2009 numbers) according to the National Taxpayers Union:

Who Pays Income Taxes and How Much?

Tax Year 2009 

Percentiles Ranked by AGI

AGI Threshold on Percentiles

Percentage of Federal Personal Income Tax Paid

Top 1%

$343,927

36.73

Top 5%

$154,643

58.66

Top 10%

$112,124

70.47

Top 25%

$66,193

87.30

Top 50%

$32,396

97.75

Bottom 50%

<$32,396

2.25

Note: AGI is Adjusted Gross Income
Source: Internal Revenue Service

Secondly, watch the first minute of this video taken from the 2008 Democrat Presidential Primary debate:

Ask yourself, “What is this debate really about, and why is President Obama so determined to ‘tax the rich’ when it has been proven that doing so will not increase revenue to reduce the deficit?”

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What In The World Are We Thinking ?

Bill Clinton’s relationship with the truth has not changed since the 1990’s. Breitbart.com posted a video of Bill Clinton on CNN yesterday explaining that the American people are easily confused by plans of lower taxes and lower spending. In the video he cited a few facts that were simply not true. See the numbers below taken from the National Taxpayers Union to see who actually pays income taxes in America.

Who Pays Income Taxes and How Much? 

                                Tax Year 2009

 
Percentiles Ranked by AGI AGI Threshold on Percentiles Percentage of Federal Personal Income Tax Paid
Top 1% $343,927 36.73
Top 5% $154,643 58.66
Top 10% $112,124 70.47
Top 25% $66,193 87.3
Top 50% $32,396 97.75
Bottom 50% <$32,396 2.25
Note: AGI is Adjusted Gross Income
Source: Internal Revenue Service

Lower taxes and smaller government allow the private sector to grow. There is nothing confusing about that, and the American people are not confused. We are reaching the point where more people are taking money out of government that are putting money in. At that point the system totally breaks down and America as we have known it disappears. This election may be our last chance to prevent that.

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