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The Rich are not Paying their Fair Share of Taxes right?

Updated on October 21, 2011

Who is Really Paying Income Tax in the United States?

Here are the facts - DIRECTLY from the Internal Revenue Service:

  1. The top 1% of income earners earn about 20% of all income but paid 38% of ALL Federal taxes
  2. The top 1% paid more in Federal Income tax than the bottom 95%!!!
  3. The top 5% of income earners earned 34.7% of the nation's adjusted gross income but paid about 58.7% of ALL Federal Income tax.
  4. The top 50% of income earners paid over 97% of ALL Federal Income tax.
  5. Okay, I will do the math for you: That means the BOTTOM 50% only paid about 3% of ALL Federal Income tax.

Effective tax rates (i.e. with all "write-offs" what is the actual percent of income paid in taxes)

  1. Top 1% of income earners paid an average effective tax rate of 23.27%
  2. Top 5% of income earners paid an average effective tax rate of 20.70%
  3. Top 10% of income earners paid an average effective tax rate of 18.71%
  4. Top 50% of income earners paid an average effective tax rate of 13.65%
  5. BOTTOM 50% of income earners paid an average effective tax rate of 2.59%

Or Maybe they Are?

The top 400 tax payers are traced by the IRS and earned and average of $345 million last year but they "only" paid 58.65 million each in tax. That's terrible, the Government should be entitled to take ALL their money!

And on the lower end...

"There are so many breaks that 45 percent of U.S. households will pay no federal income tax for 2010,"

So who is and who is not paying their fair share?

Stories about the "Rich" getting massive tax breaks are designed to piss off the masses because they are too uneducated to understand how our tax system works and think that $58.65 million isn't enough.

The problem isn't that the rich are not paying enough taxes, it's that the Private Bankers who run the system by manipulation the Money Supply (i.e. Central Bank/Federal Reserve) are using the ploy that the rich are not paying enough taxes or getting some kind of break the average guy doesn't get in order to RAISE TAXES ON EVERYONE. After all someone has got to pay for their reckless ways.

The rich are not going to pay more than what they are paying now because they can afford to hire lobbyists to act in their interests. How many people know that former Treasury Secretary Paulson was allowed to cash in his entire stock Portfolio of $700 million and paid ZERO tax on the transaction. He was a Wall Street Investment Banker/Insider. He got off Scott Free because of a special rule made only available to the Executive branch of the Government appointees. It's the whole reason he took the job. And this same Government keeps harping on the rich not paying taxes? Come on... it's a ploy. And yes this happened during the Bush Administration, and under a Democratic Controlled Congress. Neither Republicans nor Democrats are doing what is right for the people.

And how about the people who make under $50,000 a year. Maybe they should pay more taxes? Maybe they should pay some taxes? There are plenty of credits and deductions available to working families as well.

Lets do the math now: 400 Super Rich x $345 Million = is $138 Billion. And they pay a collective tax of $23.5 Billion. That's not enough?

So if the Government steps in and takes ALL the money from the Super Rich it would amount to about 1 month of War Spending in Iraq. That's it. Go ahead and hate the rich for paying Billions in Tax.

The Whole purpose of this Story is to INCITE the uneducated into believing the Rich are not paying enough taxes, when it fact it is the lower income earners that are truly enjoying the benefits of the system.

If you incite the masses then you can pass more easily tax increases (After all we have to get those evil rich people where it counts right $58.65 million simply isn't a hard enough hit).

So people go to the polls and vote in more taxes... and who pays the new taxes? That's right everybody. Nice system... use the media to manipulate stupid people into agreeing to raise their own taxes.

I'm fed up with the Republican Party war mongers who REFUSE to cut anything from the Military and want to cut out Grandma and Grandpa's benefits for which they have worked a life time to accrue. Yes they paid into the system and the Republicans want to take from them now but leave the Military untouched?

I'm fed up with the Democratic Party who wants to raise the Debt Ceiling and also refuses to cut the Military and increasingly supports the same Industrial War Complex. Obama has kept none of his promises, tripled troops in Afghanistan and now has us involved in Libya. Who the hell is going to pay for this mess? The Democratic Party is delusional believing they can continue to spend and borrow.

Neither party is doing anything to fix anything. It's all about their own careers and "winning". And winning means getting re-elected and is exclusive of doing anything that actually helps people. Neither party has the balls to address the currency manipulation done by the Federal Reserve.

Yet there is great opposition to a single payer flat tax that would actually be fair and include everyone at the point of consumption.

Just more propaganda to screw ALL people and allow the Government to continue to Spend freely while the country collapses.

So think about the real agenda when you read the next the rich are not paying enough taxes BS.

Then think about the massive amount of State and Local taxes the rich pay that you do not. If they live in a $2 million dollar house they are likely paying $20,000 a year in property taxes... taxes that pay for the education of kids that are not their own.

If they purchase a $100,000 Mercedes Benz they are paying the same Sales Tax rate as you are with your Honda Civic... except they will pay 5 times as much in actual taxes.

The Rich are not the enemy... the enemy is out of control spending, currency manipulation by the Federal Reserve, Wall Street Investment Banks tied to Commercial Banking... Speculation, etc.

Every "Rich" person doesn't come from the Banking Industry... there are a lot of wealthy people that have actually earned their wealth creating jobs and employing Americans. Yes Wall Street is the De facto example of greed and corruption, but it all ties back to the Federal Reserve.

Until it's gone there will never be any real equity in the system.

The Golden Rule: "Control the Gold, and you rule".

More taxes on the "Rich" is not the answer. The entire tax system and manipulation of the money supply needs to be reworked.

Rich people are not your enemy... the Federal Reserve Central Bank, Wall Street, Speculators, and Politicians are your enemy.

Be Ignorant or Watch the Truth - Your Choice

Income Distribution Parody
Income Distribution Parody


Submit a Comment

  • MikeNV profile image

    MikeNV 6 years ago from Henderson, NV

    The "Problem" as I see it is the lower income classes are uneducated and ignorant. They are easily manipulated by the Political Parties on both sides. They don't know how to do the research on what they are told and choose to believe anything they perceive to be in their interests. This is exactly how Class Warfare is used to garner votes.

    We do not live in a country with too little taxation, we live in a country where the people are so uneducated they wouldn't know how to demand accountability if it were shown to them in black and white.

    We allow a group of Private Bankers - who are not part of the Government to control our money supply. Until some elected leaders have the courage to do what is right for the American People (Including the ignorant) and disband the Federal Reserve... returning the power to print money to the people, we will always have huge income disparity.

  • poetvix profile image

    poetvix 6 years ago from Gone from Texas but still in the south. Surrounded by God's country.

    Amen! You said it on so many counts and quiet well if I may add. This I did not know, "He got off Scott Free because of a special rule made only available to the Executive branch of the Government appointees. It's the whole reason he took the job." How can this truly be legal I say? Just because they passed a law does that make it just or legal? I wonder. Jim Crow laws were legal at one time and now they are not. There were laws at one time restricting women from voting and laws prohibiting alcohol. They are not around any more. They were inherently unjust and so is this.

    Thank you for a great, informative hub. I think we all have to start really speaking up about this kind of blatant rape of our nation's stability, and our future, not to mention the ever declining increasingly scary present.

  • profile image

    Citizen Brain 6 years ago

    The Tax Foundation also reports that the top-earning 5 percent of taxpayers paid far more than the bottom 95 percent. The Washington Examiner says that the top 1 percent of earners — those earning more than $380,354 — paid 38.02 percent of federal income taxes while the bottom 50 percent paid just 2.7 percent.

    A 50 percent tax hike on income taxes across-the-board would still leave a federal deficit of $750 billion a year,

    In a blog post by Internet satirist Iowahawk, which was then turned into a video by Bill Whittle, the debt problem is put even more starkly: If the U.S. government were to confiscate the money from the members of the Fortune 500 (such as Exxon Mobil and Walmart), TV ad money spent on all 45 Super Bowls, the salaries of all players in the NFL, MLB, NBA, and NFL, as well as the winnings of those on the PGA tour and Nascar, and every penny from those making more than $250,000 a year, the government would only be funded through July 2. Ending the wars In Iraq and Afghanistan would fund the government through July 29.

    Did you know that the average working earning $26,000 per year gives nothing to charity.

    While the average Top 400 Earner donates $28.5 million to Charity!

    The "Rich" don't have enough money to pay off the debt, so guess whose taxes are going to rise when you support the "Tax the Rich" campaigns - that's right yours!

    The real problem is spending has been out of control for years, and there is a declining job base so there are fewer people paying taxes at all. Wake up!

  • profile image

    houx 6 years ago

    When I had more money I was happy to give more to charities and beggers. Now that I have less I feel no need to help anyone. If you tax the rich it pisses us off so we quit spending money on expensive items, travel,

    eating out, cars, jewerly etc. So now all the people working in these industries get less work. Leave the rich alone we have more then are share of probles too.

  • The Frog Prince profile image

    The Frog Prince 6 years ago from Arlington, TX

    The top 1% of the earners pay 40% of the taxes collected. When you add an additional 4% to the 1%, those people pay 60% of the taxes collected. My understanding is that about 49-50% of wage earners pay NO income tax. Doesn't seem fair to me. Why not just have everyone pay their fair share?

    Excellent analysis and spot on.

    The Frog

  • LRCBlogger profile image

    LRCBlogger 6 years ago

    very smart. The enemy is not republicans or democrats, or the rich, etc. The enemy is money in politics. Remove money from politics and you will finally see lawmakers passing sensible legislation that serves the people. The tax code is a disaster. The rich pay larger property taxes as you pointed out. Many are business owners so they pay the other half of people's social security tax. Bottom line, the entire system is corrupted and clouded by money and lobbyist. Change this first, everything else will start working out.

  • Hmrjmr1 profile image

    Hmrjmr1 6 years ago from Georgia, USA

    Mike - You got the lobbyist corruption cycle pegged. Great Job.

  • breakfastpop profile image

    breakfastpop 6 years ago

    Thank you for a sensible common sense approach to reality. Up and useful and awesome too.