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Now that the debt ceiling issue has been resolved, at least for the time being, the White House and Democrats are once again beating their tax drums — saying the rich should pay more in taxes. So, do the rich pay enough in taxes already, or should they pay more?

Not surprising, that was the biggest issue during the national debt negotiation that kept the two sides (Democrats and Republicans) apart until the eleventh-hour. The President was determined that upper income earners and corporations would pay enough in new taxes to offset a sizeable portion of any debt reduction. And even though he was thwarted at that stage of the game, he’s still pushing the same agenda.

And immediately after signing the new legislation into law, the President said he would be insisting the Super Committee put additional revenue in their upcoming bill. In essence, the President was saying he does not believe the rich pay enough in taxes.

There seems to be a common belief among the so-called “enlightened” that if only the rich paid its fair share, then all of society’s economic woes would suddenly come to a screeching halt. But is that true? And should the rich pay more in taxes than they are already paying? By the way, for Democrats the rich is anyone earning more than $250,000.

What is the truth about taxes? What is the breakout today on federal taxes?

According to an article written by Stephen Moore titled, Guess Who Really Pays the Taxes, the top 1 percent of America’s wealthiest pay 37 percent of the income tax burden even though they only earn 19 percent of the income. And, the top 10 percent of income earners pay a whopping 68 percent of the nation’s income taxes. All the while the bottom 50 percent earn 13 percent of the total income but pay just 3 percent of the income taxes.

This, of course, does not take into account Social Security or Medicare taxes which are imposed upon all wage earners. Nor does it consider state income taxes where applicable.

It should also be understood that some within the bottom 50 percent of income earners actually receive income tax rebates even though they pay no income tax.

So, does this sound like upper-income earners are failing to pay their fair share? But, to make the issue more clear let’s look at it from a real-world viewpoint.

Consider two married men employed by the same employer and earning the same hourly wage. They both routinely work 40-hour weeks as required. So, to this point they both earn the same and pay the same in federal income taxes. But that is where the similarity ends.

One, which we will call wage-earner 1, is an avid hunter and fisherman and spends as much time as possible pursuing his favorite pastime. In other words, he turns down all voluntary overtime. On the other hand, wage-earner 2 accepts as much overtime as possible. One is more concerned with the present whereas the other looks more to providing for the future. Hopefully, you can see where this is going.

Since all overtime is paid at a higher rate, depending upon the amount of overtime worked, wage-earner 2 will earn considerably more in a year than wage-earner 1 and be pushed into a higher tax bracket. That means wage-earner 2 will pay a higher tax rate than wage-earner 1. The age-old question has been, “Is this fair?”

Progressives or liberals say it is fair because those earning higher incomes can afford to pay higher taxes. Conservatives say it is unfair because wage-earner 1 has the same opportunity to work overtime as wage-earner 2 but chooses not to do so; therefore, wage-earner 2 should not be caused to pay higher taxes simply because he is willing to work longer hours.

When you put this progressive tax issue to test, honest individuals will agree that to penalize someone for working harder (or longer) makes absolutely no sense. But notice the progressives and liberals will only address taxes on the basis of the amount of income, never as to how that income was accumulated. In other words, it matters not to them that wage-earner 2 worked longer hours than wage-earner 1 and gave up time that could have been devoted to pleasure. The only thing they see is that wage-earner 2 earned a higher income than wage-earner 1 and should therefore be taxed at a higher rate.

Clearly, our progressive tax system is a disincentive on productivity; it discourages people from attempting to get ahead in life, whether it is the wage-earner or entrepreneur. For example, someone who is willing to risk his life’s savings in a small business is robbed by the Government through excessive taxation if successful but given no consideration whatever if the business fails and his investment is lost.

And consider this against the fact that only 51 percent of small businesses survive 5 years. That means that one-half of all small businesses (49 percent) fail within the first five years.

Yet, in spite of these facts, a surprising number of people have been brainwashed into believing higher income earners should be caused to pay higher taxes than those earning less. So, where did this distorted belief come from? It certainly did not come from anyone championing free enterprise.

While it may be denied by those on the left, progressive taxation is Marxism. In fact, heavy progressive taxation is the number 2 plank of The Ten Planks of the Communist Manifesto by Karl Marx.

The whole idea of Marxism is the redistribution of wealth, taking from those who have attained success and giving to those who have not.

You see, Marxism gives no consideration as to how someone gains success, even if it means putting in long hours and giving up all leisure time, or investing one’s life savings in a venture that only has a 50 percent chance of survival. Simply out, Marxism says those who are successful must share with those who are not successful.

Is there any wonder why we have so many people in this country drawing some form of government assistance at taxpayers’ expense? Is there any wonder that some unemployed never seriously seek re-employment until faced with losing their unemployment checks?

And you guessed right; those unemployment checks are funded by none other than those who work hard or invest – those who are victims of our progressive, Marxist income tax system.

This post began by asking if the rich pay enough in taxes. I say yes, the rich pay more than their fair share of taxes. Instead of looking at the rich as some sort of devils, maybe we should view them as angels. For, it is the rich that own or invest in the businesses that create jobs for others. Guess what; I don’t know of a single poor person that owns a business and pays wages.

The truth is that the more successful the rich are, the more jobs they can and do provide. Conversely, overtaxing the rich causes them to reduce business investments. Instead, they seek tax shelters. And the result is fewer jobs created.

But tell this to the progressives and liberals who believe we can tax and spend ourselves into prosperity. That’s kind of like someone being maxed out on one credit card and seeks a second one to pay the interest on the first.

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5 Comments on Do the Rich Pay Enough in Taxes?

  1. Thanks for your share. Good to know.

  2. thanks for this useful article.

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    • Franklin Canada says:

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  4. James says:

    The late Senator Barry Goldwater spent his life trying to tell America, “Extremism in defense of Liberty is no vice.”

    President Ronald Reagan warned that government could never solve a problem since government IS the problem.

    Your blogs reflect the unapologetic conservative attitude of Goldwater and his devoted minion, Ronald Reagan.

    Stay the course!

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