What is the Democrats’ answer to solving our national debt and deficit problem? Tax the rich of course. It’s really that simple. Or is it?
Revealing Democrats for the class warfare and wealth envy pimps that they are, the truth about tackling the debt problem is that it isn’t going to happen without the help and pain from the middle class too. And too bad for Democrats in Washington when ‘working people’ figure this out.
The debt and deficit are not a product of too little taxation. They were created by the government spending more than it has. The solution is not going to come from raising taxes. It will come from paring back government programs (aka spending) to a sustainable level.
Steve McCann at the American Thinker Blog explains why we can’t tax ourselves out of the deficit problem.
In a nutshell, if everyone in the highest tax bracket, now 35%, was taxed 100% of their AGI (adjusted Gross Income) over $357,700.00, we would be $1,260.0 Billion (or 1.26 Trillion) short for the year. Below is his research on the numbers . . .
The data is contained on the following IRS site: Section: Tax Generated; subsection; Tax rate and size of Adjusted Gross Income (2008): Table 3.5 (The table is here)
The tax year of 2008 was the last to date that the IRS has done this kind of analysis. In 2008 the highest marginal tax rate of 35% applied to all AGI above $357,700.00. In that year the total amount of AGI subject to the highest rate was $622.8 Billion. The government collected in taxes $218.0 Billion (35%).
In 2011 the annual budget deficit will be nearly $1,665.0 Billion and in 2012: $1,100.0 Billion. If the Liberal Democrats in league with the Socialists, the Unions and the Communists, succeed in raising the highest marginal rate, how much more would Washington D.C. receive, assuming no change in behavior and a general eagerness to pay more?
If the highest rate of 35% were raised by a factor of 20% to 42%, then the additional tax revenue would be $43.5 Billion, not much of a dent in $1,665.0 Billion. So, let’s raise the rate by a factor of 50% to 52.5%; the additional revenue would be $108.9 Billion. Still nowhere near enough, so let’s just tax it at a rate of 100%, bringing in an additional $404.8 Billion. Unfortunately the country is still $1,260.0 Billion in the hole for the year.
Obviously by confiscating at 100% of all the income of the so-called rich above a predetermined level, there would never again be an incentive to earn above the highest tax rate threshold. So where will the Left have to turn next: where the money is, the middle class.
The Left knows the gullible among us easily fall for centuries-old class warfare rhetoric that demonizes the wealthy, yet they persist in doing the unconscionable, as it keeps them in power despite the fact that it enflames passions and in some cases, violence.