Give the government a dollar and they will stop at nothing to increase that dollar into BILLIONS. Look no further then the 16th Amendment that put in place a Federal income Tax. The tax rate started at 1% and rose to 6% on income of $500,000.
In 2017, the breakdown of rates over 7 categories is the following:
- The top 1% pay 39.5% of the income taxes, even though they earn 20.6% of the income.
- The top 5% pay 60% of the income taxes, even though they earn 36% of the income.
- The top 10% pay 71% of the income taxes, even though they earn 47% of the income.
- The bottom 50% pay just 2.7% of income taxes, even though they earn a greater share — 11.2% — of the income.
Tax reform has become a very difficult road to navigate. The central opposition to any type of “FAIR” tax is always shouted down because the rich don’t pay their “fair”. This is a complete LIE. The above break proves this. What is not “fair” is that the bottom 50%, half of all income earners pay ONLY 2.7% of the total taxes collected.
The Earned Income Tax Credit can bring to a family with 3 or more children whose income ranges at the high end between $36,000-$51,000. Not only do a vast majority of taxpayers at the lower end pay NO Federal taxes but they get a refund. This is classic REDISTRIBUTION of WEALTH. A good case can be made that this is forced robbery on individuals by the government to give a portion of their earners to others without their consent.
50% of earners have no skin in the game. What incentive do they have for reforming the tax code and actually making it equitable for all wage earners regardless of the amount of money they earn?
A FLAT TAX I believe is the answer where income is taxed at a specific rate for everyone. That is “fair and equitable and does NOT steal from the wealthy to redistribute to the poorer. This type of tax system then allows individuals and companies to keep more of their earnings to save, invest, purchase and to be even more productive.
A tinker here, a tinker there does NOTHING to alleviate the unfair tax burden placed on individuals and companies by the Federal government.