Progagandist and Dittohead insist that "taxing the rich," will solve the US budget problems, not reducing spending is the answer.
We've reach a plateau where taxing more will yield less. I've shown this graph before of revenue rising after Bush's tax cuts. A rising economy will produce even more, than a flat lined one.
But, once more:
Removing the tax cuts would yield $40 billion annually, the Democrats said.
Problem is, that the projected FY 11 deficit will be about $1.65 trillion. Another $40 billion would be a drop in bucket.
Now, as to taxing more:
Per: en.wikipedia.org/wiki.household_income_in_the_United_states
There are 1,699,000 household incomes of $250,000 and above make up 1.5 percent of all households.
Another 1,325,000 household incomes with income from $200,000 to $249,999 make up another 2.87 percent of all households for a total of 4.37 percent.
Per: www.taxfoundation.org/news/show/250.html
The upper 5 percent of taxpayers in the country had a total income of $2,926,701,000 for which they paid $605,718,000 or about 20.7 percent of their income. Increasing that to $1.65 trillion would take about 56.4 percent.
The government might collect that one time. Afterward, the taxpayers would either flee the country, simply refuse to earn more, or hide their income in shelters.
Removing that much income from the economy would ensure a flat lined economy, or a double dip recession.
You can only shear the sheep so close.
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