Olemike's Blog

Who Wants to Pay More Taxes?

Posted by olemike on 07/11/2011

There is currently a huge debate regarding the merits of either raising taxes or cutting spending or both.  There is no doubt we need to cut spending.  Almost everyone agrees that at some point in the future, we will not be able to keep up with the debt interest payments unless corrective action is taken – preferably sooner than later.  I know that many of my liberal friends think that we need to raise taxes – specifically on the rich.  After all, who could mind having  “someone else”  pony up more cash? Lots of people think that the rich do not pay their fair share.  One question comes to mind – what is their fair share?

As you will see from the following data taken from the The Tax Foundation (a nonpartisan tax research group based in Washington, D.C.), the well-off do pay a pretty big chunk of change compared to most Americans.

Calendar Year 2008

As you can see, the top 5% income earners not only pay the most in total taxes but also pay the highest marginal rates.  Further, the top 25% basically carries the bottom 75% when it comes to income tax payments.  So, back to the original question, are the well-off paying their fair share?  I tend to think so.  I also think that if taxes are raised, they should be raised for most everyone.  My preference is to cut spending and leave taxes alone.

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