>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>nothalfbad wrote:Stop Coddling the Super-Rich, by Warren Buffett
http://www.nytimes.com/2011/08/15/opini ... _LO_MST_FB
From the article:
"Since 1992, the I.R.S. has compiled data from the returns of the 400 Americans reporting the largest income. In 1992, the top 400 had aggregate taxable income of $16.9 billion and paid federal taxes of 29.2 percent on that sum. In 2008, the aggregate average — but the rate paid had fallen to 21.5 percent.
The taxes I refer to here include only federal income tax, but you can be sure that any payroll tax for the 400 was inconsequential compared to income. In fact, 88 of the 400 in 2008 reported no wages at all, though every one of them reported capital gains. Some of my brethren may shun work but they all like to invest. (I can relate to that.)"
According to Buffett taxes need to be raised on the rich. The article is worth reading, he makes good points.
Another quote:
" I have worked with investors for 60 years and I have yet to see anyone — not even when capital gains rates were 39.9 percent in 1976-77 — shy away from a sensible investment because of the tax rate on the potential gain. People invest to make money, and potential taxes have never scared them off. And to those who argue that higher rates hurt job creation, I would note that a net of nearly 40 million jobs were added between 1980 and 2000. You know what’s happened since then: lower tax rates and far lower job creation."
Let's see, here..........................
In 1992, the top 400 had aggregate taxable income of $16.9 billion and paid federal taxes of 29.2 percent on that sum. In 2008, the aggregate average — but the rate paid had fallen to 21.5 percent.
I guess that's supposed (or at least assumed) to be a BAD thing by Mr. GotRocks Buffet.
But wait........
29.2% of $16,900,000,000 is $4,934,600,000.
21.5% of $90,900,000,000 is $19,543,500,000.
So a 26% decreas in the effective tax rate brought the government a 296% increase in tax revenues, right? Is anybody who is posting here too dense to figure out whether that's a good thing?
This focuses us (or should, at least) on the REAL question: Is the federal taxation system about raising revenues, or is it about prosecuting class warfare and the politics of envy?
A lot of solid truth has been posted here on this subject, in my opinion; and some total bullsh!t, too, I'm afraid.
Corporations truly do not pay taxes - - their customers do. The reason politicians like to tax them is that they can't vote, and 99.99% of their customers haven't figured out who's really paying that tax.
15% IS too dang much to pay in flat taxes. Yet many advocates of this scheme talk in terms of 28%. That's what scares me about it. Also, what happens to people who do not generate enough income to pay even a 10% flat tax in a bad year?
And it is also true that the market manipulators like corporate raiders (not to mention hedge funds and other entities that bleed wealth without contributing to the system) are destructive to the long-term health of US businesses. But I'm not sure the tax system is the way to control that behavior. Why not just make it illegal?
Finally somebody asked the question "who will collect taxes if we abolish the IRS?" I would think the answer to that would be obvious. It'd be the same folks who enforce all other federal laws and prosecute other federal crimes, wouldn't it? Heck, we could probably abolish the ATF and thereby free up enough US attormeys to take care of that job.