Friday, October 7, 2011

Effects of Taxing the Super Rich

Very interesting infographic outlining the numbers behind some of the suggestions that we should tax the super-rich to help bring down the deficit.  The key takeaways are as follows.  First,  the rich and super-rich already do pay considerably more in taxes than the middle class.  Those making between $100k - $200k pay 11.8%  vs. 22.4% paid by those making over $10M.  This is according to the IRS, so let's put those rumors about the secretary paying more in taxes than the billionaire to rest!  It does not work to look at a few individual circumstances, we must look at all tax payers in aggregate.  Next, taxing the super-rich will not have a material impact on the deficit, period.  Finally, if we taxed those that make over $10M at 100%, it still would not have a meaningful impact on the national debt!

The "average" American does not realize just how overwhelming the national is and how difficult it will be to pay it down.   Taxing the rich is just another "talking point" or "sound bite" solution that will not have any meaningful results, other than to upset millions of Americans.  It is very similar to the "cash for clunkers" program or the "first time home buyer tax credit", which as we all know now had no long term benefits for our economy.

Tags: Warren Buffett Taxes, Should rich pay more taxes, tax code, irs

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