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