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Wednesday

The Wealthiest 1%

“The truth of the matter is that the tax policy in America has been established by big corporations and the wealthiest Americans. That's why we have tax breaks for the top 1 percent and 2 percent…What we ought to be doing instead is getting rid of these tax breaks for the wealthiest Americans


“Lots of people come on [CNBC] who, you know, are gung-ho, protect the tax cuts for the wealthiest of Americans, that will not work if the economy slows down. You need to get money in the pockets of tens of hundreds of millions of Americans, and that's what I intend to do.”


“We will also turn the page on an approach that gives repeated tax cuts to the wealthiest 1 percent of Americans even though they don't need them and did not ask for them.”


“From 2003 to 2005 -- the increase in income for the top one percent exceeded the total income of the bottom 20 percent. Given that, what would be wrong with letting the tax cuts for the top one percent expire?


These statements were made by leading Democrats. The first three are attributed to John Edwards, Hillary Clinton, and Barack Obama, respectively. The last is attributed to George Stephanopoulos, the supposedly unbiased, objective reporter from ABC News. (By the way, before becoming an elite member of the left-wing mainstream media, Stephanopoulos was a senior political advisor for the Clinton White House. So, it should come as no surprise that his bias tilts far to the left.)

But, these statements are nothing new. It is the same mantra we have heard since Bush’s tax cut plan was passed in 2001. For the past 6 years, Democrats have constantly whined and complained about the “wealthiest 1% of Americans” and the “super rich” being pampered by the Federal Government at the expense of the middle and lower classes.

It’s odd how none of them ever mention exactly what percentage of the entire national tax burden falls on the wealthiest 1%. You might be interested to know that the top 1% of wage earners in this country pay 39% of the tax burden. But, I digress.

The media and Democrat politicians alike love to characterize Bush as pandering to the “super rich.” But, as is usually the case, their facts are little...skewed. Under the Bush Administration, the wealthiest Americans have seen their tax burden INCREASE. Not, only that, their tax burden increased at a rate greater than any other previous administration.

From the Wall Street Journal:

Based on the latest available tax data, no Administration in modern history has done more to pry tax revenue from the wealthy.

Last week the Congressional Budget Office joined the IRS in releasing tax numbers for 2005, and part of the news is that the richest 1% paid about 39% of all income taxes that year. The richest 5% paid a tad less than 60%, and the richest 10% paid 70%. These tax shares are all up substantially since 1990, and even somewhat since 2000. Meanwhile, Americans with an income below the median -- half of all households -- paid a mere 3% of all income taxes in 2005. The richest 1.3 million tax-filers -- those Americans with adjusted gross incomes of more than $365,000 in 2005 -- paid more income tax than all of the 66 million American tax filers below the median in income. Ten times more.

Notably, however, the share of taxes paid by the top 1% has kept climbing this decade -- to 39.4% in 2005, from 37.4% in 2000. The share paid by the top 5% has increased even more rapidly. In other words, despite the tax reductions of 2001 and 2003, the rich saw their share of taxes paid rise at a faster rate than their share of income.


It goes to show you that politicians such as Hillary Clinton, Barack Obama, and John Edwards have perfected the art of class warfare. They pander to people who have an unfettered, unapologetic hatred for anyone who dares to be financially successful. It has nothing to do with the facts at hand.

It should be noted that all of the Democrat Presidential candidates speak of letting the Bush tax cuts expire and soaking the rich with new taxes. Based on this new information, I have to ask…How much is enough? The top 1% already pays 39% of the tax burden, which is a huge increase from what they were paying just a few years ago!

When will enough be enough? What percentage should they be paying?

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