American Elephants


Understanding the Tax Battle by The Elephant's Child

Here’s a graph with information from the IRS, explained by AEI economist Mark J. Perry that explains some of the confusing parts of the tax questions. Read it carefully until it sinks in.   I asked Bing how many U.S. taxpayers there are, and the best I could come up with was 243 million as of 2013. They apparently haven’t counted up since then, although it seems like a number that would be needed.

But never mind. Do a little math, multiply 243,ooo,ooo by 95%, and 243,000,000 by 01% so you are talking numbers of people or households, and that will give you a sense of what they are talking about with the bottom 95% and top 1%. The standard assumption that we can just soak the very rich doesn’t work. It’s just a helpful exercise. They don’t have enough money to pay all the taxes.

I suspect that most people don’t really know what they pay in taxes. If you work for a corporation or good sized business, you probably have your taxes withheld, and get a total at the end of the year, which you enter on your return and promptly forget. But I may be describing myself, not you.

At any rate Democrats will tell you that the entire Republican tax plan is just a give-away to the very rich. Republicans will try to explain what is actually happening and get so tied up in the complicated explanation that nobody understands anyway.

We have an enormous deficit, thanks to Obama. Baby Boomers in their vast numbers are beginning to retire, so they need more money. I would suggest that since federal pay reportedly is about twice the pay of the rest of us, some pay freezes might be in order.  Just a thought.




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