Even Scott Adams is getting into the game.
Look, it's not about income taxes. It's about taxes, and most of the folks who pay no income taxes pay a boatload of other taxes. The poor get screwed by government - the median family pays essentially no income taxes, but roughly 25% of their income in taxes. There are essentially no people at all in this country that don't pay taxes (hello? Sales tax?).
None. Nada. Zip. When you look at the percentage of total income confiscated by taxes from the poor, it's shockingly high. Nice job, "progressives"!
All this talk about a "tipping point" has it precisely backwards. Most of the middle class/lower middle class are natural allies with us in the fight for smaller government. If the GOP weren't the Stupid Party, they'd flog this to victory after victory, harnessing the rage of the poor against the Democrats. But then again, if I were French, you'd call me Jacques. They don't particularly want to reduce government receipts much, do they? Coke party, Pepsi party.
Seriously, all this focus on income tax is like a dieter who only counts the calories at dinner.
Via Fosetti.
Borepatch: Can I get an AMEN?
ReplyDeleteGuffaw: AMEN!
We have exactly the same problem here in Old Blighty.
ReplyDeleteThe debates are completely skewed around income tax alone.
Yet every calculation I've seen of actual exposure to tax, even on a national average wage, comes out between a 65-70% marginal rate of tax. It's obscene.
When my daughter was 8, I took her to the toy store to spend some of her Christmas money.
ReplyDeleteShe had $10.00 and found a game for 9.99 that she wanted to buy.
We get to the register and the total was 10.26 (or right around there) and my daughter said, "But it says 9.99!"
I said, "Well hon, you have to pay tax on it."
She said, "TAXES! Why do I have to pay TAXES! I'm just a kid!"
I laughed and the girl at the register laughed and I said to my little girl, "Well, unfortunately, taxes are one of the two things that no one avoids."
I didn't have the heart to tell her that death is the other thing.
Actually, the median tax rate on the "poor who pay no taxes" is close to 60%. The taxes are wrapped in the sticker price, and represent the taxes on profit,the fuel taxes for delivery, and so on all the way back to the mine or farm.
ReplyDeletePut another way, if there were no taxes, a $1,000 market basket of goods and services would cost just over $380. Even a 50% tax on retail sales would cut the total price paid to just $575.
So essentially, the poor who "pay no taxes" pay a higher percentage of their income to a tax collector than the "rich." Who often can almost entirely avoid taxes.
And, as the song says; "It's the syme the 'ole world ovah."
Stranger
Of course the poor get reverse income taxes (earned income credit) and then they get EBT cards, reduced priced(sometimes free) gas/electric/telephone. Reduced price housing. Reduced or free transport. Money for each kid via taxes as well.
ReplyDeleteAdd all those things up and they completely swamp the sales and sin taxes you listed.
Under Clinton welfare from the poor was moved from a direct assistance to a host of programs and reversed income taxes. Many of these perks are provided by NGO's funded 80% or more by the government.
Heck---you want to give the blood pressure meds a test, do a search on "hidden taxes".
ReplyDelete43% on beer?
143% on PEANUT BUTTER?