Wednesday, April 27, 2016

Total Federal Taxes -- Income, FICA, Corporate

Here are the income quintiles for the US ... take the 320ish million people and divide into 5 groups by income. Each group will have about 6.5 million people in it (6.5 x 5 = "32") the bottom of the first quintile is 0 and the top is $21K. The bottom of the next is $21K and the top is $41K --- $68K, $112K, the top starts at $112 and the top is the highest income person in the US for that year.

*** Note, the right 5 columns are ALL relative to the top quintile since it is a HUGE income range.

Points to be taken away from this:
  • No matter how you slice it, people that make less than $100K really don't pay that much in FEDERAL taxes as a % 
  • Remember ... state, property, gas, sales, hotel, license fees, cigarette, liquor, etc, etc are NOT included here! It is still WAY short of "total tax". 
  • Taxes on business are paid by the customers, investors and workers of that business! MOSTLY by the customers -- because if they can't pass the tax along, they go out of business. 
  • It's pretty easy to see how a "flat tax" could work. If everyone paid "17-20%" in taxes and there were no corporate taxes, we would increase tax revenue, keep business in the country, increase incentives for old guys like me to work and maybe best of all, get out of the idea that the bottom 3 quintiles can get added benefits and have the top pay for it! 
 Good article overall and not that long. 

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