Do you think the 35% (this is around the US average federal income tax) that you pay is ‘all’ you pay in federal income tax? I assume you have heard the statistic that the top 1% pays 60% of the federal tax load. Do you really think that top 1% is paying that 60%??????
Trickle down works BOTH ways. When the top 1% is hit with the most tax, that tax is reflected in the margins of the companies they run, the salaries they ask for, the investments they make, etc. This is not evil, this is commendable and common sense business practice.
Margins and salaries are costs of doing business and are added directly to the cost of consumer goods. Investment decisions make or break companies, those that produce the biggest margins post the biggest gains and attract the most investors. Those that don’t, ultimately fail or need to change their practices to increase their margins.
The result is, ALL taxes are ultimately paid for in the costs of goods and services. Therefore the people that pay the majority of the taxes in this country is everyone! Everyone that buys goods and services.
The only way to look at that intelligently is that those for whom the total of the cost of goods and services (both taxable and non-taxable, since taxes effect the cost of even food and other essentials that are tax exempt) is the largest percentage of their incomes have the highest percentage of tax burden.
In other words, if a millionaire spends $100,000 per year on food, luxuries and frivolities and a man making $15,000 a year spends all of it on bare essentials like food and rent, the low wage earner is paying a far higher percentage of his income on both realized and hidden taxes in those goods and services.
In a free market economy, even with many regulations, the lowest income citizens are getting taxed the most (based on percentage of income). This includes those who have allegedly ‘no federal tax liability’ since they still have to buy goods and services who’s prices are effected by the transference of taxes (costs of doing business).
It would be impossible to calculate the actual costs of a progressive tax system on the little guy, but the end result is increased costs of goods, decreased jobs, decreased wages overall, increased discrepancy in ‘class’ earnings and a never ending shell game of politicians saying we need to tax the top earners.
It’s a fix – and it is an obvious fix to anyone with a brain.
Yes, I am saying that:
- a flat tax will lower the discrepancy in class earnings.
- less government will help the poor MORE.
Combining a fair, flat tax with smaller government will:
- increase jobs
- increase new business initiatives
- increase capital investment
- increase wages
- increase GDP
- increase buying power of the dollar
- increase value throughout the system
Government intervention by way of progressive taxation CREATES the problems it is alleging to fix.
This is ON PURPOSE!