The Mudcat Café TM
Thread #114650   Message #2455346
Posted By: TIA
01-Oct-08 - 10:52 PM
Thread Name: BS: The Bailout
Subject: RE: BS: The Bailout
Bobert, I do buy Q's figures, but let's think about them for a moment. Of course the wealthy pay more taxes - because they are wealthy. The indigent don't pay much of the total tax -- because they are indigent.   DUH!

from Wikipedia (I know, I know.....):
In the United States at the end of 2001, 10% of the population owned 71% of the wealth, and the top 1% controlled 38%. On the other hand, the bottom 40% owned less than 1% of the nation's wealth.

In describing tax systems, it is important to distinguish between the percent of taxes paid on a given income, and the percent of taxes paid by a person with a given income. For example, if a person earns $1,000,000 and is taxed at a rate of 10%, they will owe $100,000 in taxes. On the other hand, if a person earns $10,000 and is taxed at a rate of 20%, they will owe $2000 in taxes. The person with the greater income is taxed at a lower rate but pays a higher tax. The person with the lesser income is taxed at a higher rate but pays a lower tax. The United States has a tax system which is a mixture of progressive taxation and regressive taxation. The income tax is progressive, capital gains tax, at a lower rate than the income tax, is regressive, as is the sales tax, since the less wealthy spend a greater percentage of their income. In 2003, the one percent with the highest salaries paid more than 34% of the nation's federal income tax; the ten percent with the highest salaries paid more than 66% of the total income tax; the top 25% of paid 84% of the income taxes; and the upper half accounted for virtually the entire U.S. income tax revenue (nearly 97%). This is an inevitable consequence of the concentration of wealth. *****People who do not have much money cannot pay high taxes, even when they pay a greater percentage of their earnings in taxes*****.

*****EMPHASIS BY TIA*********