Paying Your Fair Share of Taxes?? :-) :-) : -)

Dear All;

This just released analysis is of the 2006 personal tax returns.

From the article:

New statistics from the Internal Revenue Service show that the highest-earning 1% of taxpayers in America make 22.06% of all income reported to the government. That's almost twice the 12.51% of total income earned collectively by the lowest-earning 50% of workers. Yes, 1.4 million taxpayers claim 22% of income earned while 68 million share just 12.5%.

When it comes to taxes paid, an even wider discrepancy shows itself, in reverse. Those earners in the top 1% pay 39.89% of all federal individual income taxes. The bottom 50% of earners pay just 2.99% of those taxes.

Unfortunately what they leave out are the actual numbers of returns in those categories. For the lower wage earners it also leaves out the impact of Social Security and Medicare payroll taxes on low wage earners which is regressive. Plus the impact of state income taxes and state sales taxes.

So while the overall numbers percentage wise show the low wage earners paying a small percentage of the total taxes taken in the personal impact on the low wage earners ability to have enough left over to live on after all taxes is extremely significant.

Therefore as always I say to really help the low wage earners exempt all the low wage earners earning below the federal poverty guidelines from all income and payroll taxes, repeal the minimum wage laws and the union sponsored prevailing wage laws and free all employers who hire low wage earners earning below the federal poverty guidelines from having to pay the employers portion of social security and medicare taxes as well.

This way employment would rise dramatically among low wage earners who would get to keep what they made for themselves and their families. And employers would have more incentive to hire the un-skilled giving them a shot at pulling themsleves up to higher paid positions with some job experience.

To cover the net difference in taxes taken in cut the federal budget by no less than 10% which is easliy achieved and cut the capital gains tax to 5% of all transactions and so on and so forth.

Ron Getty - SF Libertarian
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