Time To Pay Your Loan, Mr. 1%

You should be irate every time you hear a rich person complain about his paying of taxes… “I pay so much taxes ….”  Immediately you should add “because you got all our money.” For that is exactly where it is…

For example, let’s take Ronald Reagan’s tax rate: 50%…. and compare to the Bush W rate of 35%…… Follow up with 1980 versus 2013… as short span of one third of a century….

Chart Courtesy of dshort.com

Raw Data 1980 (Theoretically Averaged)
0-20%——$12,000     (Times X) 50% = $6000
21-40%—–$15,000     (Times X) 50% = $7500
41-60%—–$25,000    (Times X) 50% = $12,500
61-80%—–$30,000    (Times X) 50% = $15,000
81-100%—-$38,000    (Times X) 50% =   $19,000
{95-100%–$68,000   (TimesX) 50%    =  $34,000}

Total —————————————= $59,500…

Raw Data 2013  (Theoretically Averaged)
0-20%——$12,000    (Times X) 35%  = $4560
21-40%—–$26,000    (Times X) 35%  =,$9100
41-60%—–$50,000   (Times X) 35%  =,$19250
61-80%—–$76,000   (Times X) 35%  =,$26,600
81-100%—-$178,000  (Times X) 35%= $62,300
{95-100%—$317,000 (Times X) 35%= $110,950}

Total ——————————————$121,810…

(This exercise is theoretical. It is designed only to show the mathematical properties underlying our nation’s problems.  There are many other factors not included here which either promote or work against these results… So don’t get bogged down on these results not being real.. Those effects wash out and are not part of what we will show here.)

Below are the across the 33 year  plus-or-minus changes in the theoretical tax burden of each quintile.

0-20%——-$ (-1,440)
21-40%——$1,600
41-60%——$6,750
61-80%——$11,660
81-100%—-$43,300
{95-100%—$64,950}

 

Now if you take the theoretical amount of today’s top income, and instead tax it at 50%, you get this figure… $158,500… That is what todays top people averaged IF rates stayed at Reagan’s level of many years ago (compared to $110,950)…  The difference from that and actual is $47,850…. which if you look at the bottom showing the difference from 80 to now, would cover all of the four lower quintiles contribution…  (-1440+ 1600+ 6750+ 11600= 22,570)

So the tax revenue which we need, and have lost, if fairness is to be an issue, must come from the top 1% first and then, and only then, after they have paid back what they’ve earned from less taxes first, then begin to think of raising taxes on the other 4 quintiles…

Unequivocal proof we need to raise taxes on the top 1% as soon as possible..  There are a lot of other reasons of course, but just math theory dictates that to grow America and stop its backwards slide, the top 1% need to pay more.  There is one obstacle … The Republican Party that thwarts any progress for the other 80% of us, just because they won’t budge on opening the door (increasing the top one percents’ tax rate) and let us pass through into prosperity again…

Furthermore:  this put a nail in the coffin for all those arguing “a flat rate”….

For those arguing a flat rate, obviously you can’t take any from the lowest level (its negative) which makes the flat rate argument completely moot because the whole idea of a flat rate is that it is exclusive. As soon as you start picking and choosing, what you are doing becomes progressive and it is not a flat rate anymore…  Throw that out completely.  You can’t tax negativity….

We, the 80%, through our misguided politicians in the 80’s, loaned the rich our money to get rich by.  Now, when we ask for our first installment payment, they say, no, it’s…. their money?  I don’t think so…..