Galena, IL (PRWEB) September 27, 2012
"The job of the economist is to justify the unjustifiable," quoted researcher Wm Fawell. "And when they have a piece of data that fits their model, they never questions it. Rather than acting as a scientist that uses a prism to study light, not one economist has ever questioned the IRS data from 2004 that held that the top wealthy 1% pay 37% of all Federal tax revenue, from which they deduce the 1% are paying way beyond their share. No one ever questions the way the data has been prepared, and the theory of a U.S. "progressive" tax policy is in reality, extremely "regressive". Again, the unspoken truth is the most clever lie of illusion."
WhoPaysHowMuch: An Explaination of Fig 1 & Fig b:
This Population Wealth Ratio is derived by dividing the % of Wealth Rank into the % of Income of that Class. Then the Population Wealth Ratio is divided by the % of Taxes /Income Class to derive a Population Tax Ratio.
Large and in charge are the richest 1% of Americans who have a Population Tax Ratio of .51, making them the second least impacted Income Class after the lowest 50% (coming in at 1.282) by a healthy margin.
The less wealthy of the top 10% come in third at .2 followed by their betters chasing the “Super Rich” at .175. Bringing up the rear is the "Late-Great Middle Class of America” at .12, followed by that unfortunate 25% living just above the lowest 50% getting glued, screwed, and tattoed at .0075. Keep in mind that low is bad, and good is high when you’re working with this Population Tax Ratio.
Where do you fit in the formerly great “Middle America”? asked Fawell. "Where have you gone “Silent Majority”? This is even a greater injustice when you consider real estate taxes, gas pump tax, sales tax, et al, which have a much greater regressive tax impact upon the lower income classes, as they decline in wealth."
America's current tax system is not only regressive, but the actual tax burden to the declining income class rank is actually much more regressive than anyone might have imagined, and by an incredibly wide margin. This makes it very hard to justify raising taxes on everyone, as Congress and the President are planning by default after the elections, simply by their agreed inactivity to do anything about the budget they haven't passed in 4 years. The plan of the President and Congress is to let the previous cuts die so they can have at a new and larger tax pie to share.
The question is not to guess whose coming to dinner, but to guess who is for dinner (i.e.rack of taxpayer)?
Here are the numbers:
Data reflects IRS data from 2004.
As Released by the IRS: (Note: VOCUS is not capable of providing charts, so to view Figure a & b, please go to http://electanewcongress.com/category/blog/)
"As you can plainly see (but economists can't), the richest 1% (5th in Rank Impact), followed by the 3rd and 4th effectively round out the top 10% of the population who are impacted the least by current tax codes. They are only outpaced by those under 50% who don't pay taxes anymore because they've been squeezed out of their share of prosperity in an America void of Liberty and Liberty's economic model. Still, the lowest 50% having been squeezed out of any kind of decent job due to the mess the Federal government, the Federal Reserve, and Wall Street have created, and pay a dis-purportionate amount of their income in local taxes and fees," Fawell elaborated. "This is what Elect A New Congress (http://www.electanewcongress) is all about."
Being financially ground to dust is the middle class of America ranked at .12 and .0075 (1st and 2nd), and are constantly under assault from real declining income, job strangulation, and inflation, not to mention holding the lowest Population Tax Ratio (low being bad). This helps explain why the wealth gap is being driven wider and financial depression is breaking up families, preventing relationships, and denying people to live with dignity, in the middle and lower classes. This is manifestation of a government methodically bankrupting its people, which coincidentally, is the definition of revolution.
"This imbalance is what happens when you have ruling class that has grown so grotesquely obese that they're gobbling everything up in sight just to stay solvent," Fawell explained. "It's literally Wall Street or Main Street, and right now, it's all Wall Street. The Depression America is in is not going to end until Wall Street and its enabler, the Federal Reserve Bank, are completely RESET. This will require an Act of Congress, and for Congress to Act, requires that Congress be RESET first. This is why America is in the shape it is in,and we're going nowhere but down."
What's the answer?
"Scrap the entire system and put the entire tax code on 100 pages or less," Fawell opined. "The current code is somewhere over 75,000 pages and growing. Every time they pass a new tax code it is referred to as that years Attorney/Accountant Relief Act, because they and the lobbyists are the only ones making a living off of it. It is a time honored fact that once a tax gets over 20%, people start trying to figure a way to cheat on their taxes, giving the IRS an excuse to become as repressive as its tax.
Where to Increase Taxes?
Target the big absolutely mandatory hit of a 50% to 85% tax on passive income over $1,000,000. If you can' t live on a Mill you're living too large," Fawell pointed out. "And if you're sucking off the world that large and have accumulate wealth where you don't have to lift a finger, you probably inherited it or procured it illegally on Wall Street. In either event, you should get rocked and socked like the middle class of American has been taking it for years. The super wealthy can always opt out. People can leave the Country if they're that selfish and lazy. Or, they can take the smart way out and make those passive investments active investments, and create a business. Now there's an interesting idea, essentially boosting savings by the transfer of risk/reward. How novel is that?"
"New money goes into investment in new companies, which is the historic mechanism that creates new jobs," Fawell enjoined. "Innovate, or get stuck hard on taxes, it all depends upon a persons appetite for risk vs. their desire to leave their feet on the desk and the TV on. This also addresses some of the fiscal injustice that has been gobbling up so much wealth during the last 40 years during the Financialization of America. This is a good, constructive step towards starting to balance the discrepancy of wealth in America.
"Taxes are just a part of a revitalized America, cutting government by restoring Liberty to the function of government is the catalyst," Fawell solemnly concluded. "And from http://www.electanewcongress.com, you will always hear the bell of Liberty singing, basking it its light."
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