Tuesday, April 19, 2011

The Wall Street Journal Today

One of the things I enjoy about traveling is the change in morning routine - instead of getting up to make the gang breakfast and pack lunches and drop off my preschooler - I getup and have a cup of coffee and read the newspaper.  I particularly like to read the Wall Street Journal -
Today on page 9 there is a very interesting opinion piece.
"Where the Tax Money Is"
the top 10% already pay 69% of all total income taxes while the top 5% already pay more than all of the other 95%
so the article argues that asking the top 10% "to pay a little more" doesn't get the Fed very far.
"in 2005 the top 5% earned over $145,000.  If you took ALL the income {not just the taxable rate, notation mine} of the people over $200,000, it would yield about 1.89 trillion, enough to revenue to cover the 2012 bill for Medicare, Medicaid and Social Security- but not the same bill in 2016, as the costs of those entitlements  are expected to grow rapidly.  The rich, in short, are not nearly rich enough to finance Mr. Obama's entitlement state ambitious-even before his health-care plan kicks in."
The article goes on to state that in 2008 most of the taxable income actually came from middle income taxpayers.
The article analyses the other forms of taxes that President Obama has proposed, the "climate revenues" the limiting of tax deductions, and "other "loopholes" such as mortgage interest rates."
"The irony is that even as Mr. Obama says he merely wants the rich to pay a little bit more, his proposals would make the tax code less progressive than it is today."

again - the above is paraphrased; because I want to share the information & because I doubt that everybody reads the Wall Street Journal.
While I have not read the budget and I certainly haven't run the numbers, I have had a very difficult time taking President Obama's speeches about that group of people at the top seriously.  I have a hard time taking it seriously when there are corporations like GE, Amazon, Google, IBM and Ford (amongst others) that don't pay taxes - what?  Yeah - we are going to squeeze it out of a small % of people "at the top" but let monstrous corporations keep their money.  Honestly - If that tiny % of people could have saved the Fed. Gov. they would have by now.
check business pundit for facts on corporations & taxes

1 comment:

Debbie said...

Seems like it would be so easy to just cut all the tax loopholes and everyone and every business pay their fair share. I can't help but think that would go a long way toward helping our deficit.