If 20% of the people control 80% of the U.S. wealth, why does the poorer 80% have to pay taxes?

Question

Would we even NEED social security, welfare, minimum wage, etc., if the filthy rich paid the highest percentage of their income in taxes? Or why not ALL the income taxes?

Answer 1

The top 50% of income earners pay a whopping 96.5% of federal income taxes, while the lower 50% pay just 3.5%.
The top 25% pay 83.88% of federal income taxes
The top 10% pay 65.8% (these are people with an adjusted cross income of about $95,000 or higher)
The top 5% pay 54.4%
The top 1% pay 34.3% (these are people with an adjusted gross income of about $300,000 or higher)

Answer 2

It's the golden rule. He who has the gold makes the rules.

But in all reality its not really the poor who get it bad, its the middle class. The rich have ever so many creative ways to avoid taxation. The poor really pay no taxes (excluding paying into social security and sales tax).

What truely needs to happen is to end the wage hikes congress gets every year. End the congressional pension and end their medical plans. Make them live on social security like the rest of the public and make their wages more reflective of the nation as a whole. Require them to live off of the median national income for 4 years before they are ever even eligible to run for election. Maybe then we would be more likely to get reasonable and responsible legislation passed in regards to the nations budget and economy.

I think a big part of this is the mindset much of the uber rich have. I saw an interview with a billionaire on CNBC one day, don't remember the fellows name, but he was in his 80's and ran some brokerage. The interviewer asked him how he continues to work into his 80's. The billionaire responed "I love what I do, hell if I only made $200,000 a year I'd still do it." I don't think they understand how the majority of the country lives and how they make nothing compared to them. But such is the world and I fear we have little chance of ever changing it.

Answer 3

Social Security had a growing surplus of funds and had been tapped for several " loans" by the Government up to the Reagan administration. At that time, the fund was done away with (1984 tax year) and SS funds started going directly into the general fund, and have ever since. If it had been left alone, and the money previously stolen replaced, Social Security would be in absolutely great shape today.

An interesting little federal expenditure is the incentive payments that go to corporations that advertise their products over seas. Interesting because according to OMB the Cargill Corporation alone receives more money as incentives than all federal spending for social programs. All!

The top 20% pay very little in taxes, many with $multi-million income pay no income tax at all. Lee Iacocca is a very good example of one with no income to tax but millions to spend.

Answer 4

That is not true. The bottom 50% pay no taxes. Why should they only pay income taxes? If you live in this country and use the resources you should pay taxes. It would be easier if we had a flat tax.

To Gaspode: The Social Security Fund was put in the general fund under the JOHNSON administration, not Reagan. Could you at least do a little research?

Answer 5

Thank you for your question.

That idea is not a new one, and it has never worked. The reason for the 20/80 balance is as follows, in a nutshell:

The rich are wealthy because they learn how to achieve what they want through creative means. (i.e. providing some sort of benefit to the masses.) This puts them in a position which results in wealth for themselves and their families.

The poor are poor because they want someone else (i.e. the wealthy, the government, their parents, etc) to provide free services. This puts them in a position of relying on others, which keeps them "poor" (in the lower or middle class).

Best wishes.

Answer 6

Because the rich like it that way.And they control the country.I make a little over $22,000 per year.I have a friend that makes close to a million per year.I pay more taxes .I can't even afford health care.Sick isn't it?

Answer 7

The rich republicans don't belive in paying taxes, and use the alternative minimum tax to avoid it. Among other loopholes the rich created for themselves.

Another day in the land of the free.

Answer 8

Spoken like a true lib socialist.
Around 50% do not pay taxes because of income.

I will graduate college soon. Knowing that if through my hard work I get a good job, I will have to pay a larger share of my income to the Government to support people who decide to clean offices for a living.
HOW IS THAT FAIR?

Answer 9

Just because WE worked hard to get where we are does not mean I OWE someone who chose not to work as hard a free pass on taxes.

ALTERNATIVE MINIMUM TAX - ANTHONY
When your income is above 250K or so (don't know exactly) the AMT kicks in and YOU OWE MORE!
We have paid the AMT for many years. This year it cost us $5,000 MORE.

Answer 10

I got a better idea, reduce the Congress members wages to $50,000 a year, then cut off a ton of their benefits. And from now on, have the people vote on their wages. **** YEAH!!!!