
8 minute read
When it comes to paying taxes, what’s a ‘fair’ share?
President Joe Biden’s State of the Union address almost, if not always, proves the adage, “You know a politician is lying if his lips are moving.”
For Biden, it was one lie after another. His claim gas prices are down $1.50 a gallon was amazing. What he didn’t say — gas prices were about $1.25 per gallon less when he took office than they are now. In other words, under Biden gas has increased in price by nearly 50%. And the only reason prices are down is because Biden drained half the Strategic Petroleum Reserve for purely political reasons.
But it’s time to bury the idea as stated by Biden several times that the rich don’t pay their “fair” share of taxes. What is “fair?” Is it fair that I make more money than someone else because I have greater skills or work harder? Is it fair that someone who invents a cure for cancer gets rich because of his invention? Is it fair that when I played baseball I didn’t get paid a dime and yet some guys like Aaron Judge of the Yankees makes $40 million a year for nine years, guaranteed, even if he broke both legs and couldn’t play again?
If rich people are charged more for taxes, then maybe the price of goods should have graduated prices.
If you make $1 million a year, you pay $500,000 for a Tesla, but if you make $50,000 a year you only pay $10,000 for the same car. Of course, Tesla would be out of business or refuse to sell cars to lower-income people. In a socialist society, that could happen as government controls everything, including the means of production. That is why socialism always fails. It defies human nature. Capitalism is human nature.
But let’s look at the latest tax data (2020) from the IRS as to who really pays all the income tax. The top 1% if rich people are charged more for taxes, then maybe the price of goods should have graduated prices. if you make $1 million a year, you pay $500,000 for a Tesla, but if you make $50,000 a year you only pay $10,000 for the same car. of income earners — more than 1.5 million filers (about 157 million tax returns are filed annually) — pay 42.3% of all the income tax paid to the U.S. Treasury. Their average tax bill is almost $500,000 on an average income of $1,765,000.
Let’s look at the taxes paid by the top 10% of tax filers, which is a bit over 15 million returns. The taxable income averages about $400,000 and the average tax paid is about $80,000, which adds up to paying about 74% of all income taxes paid annually.
Looking at the top 25% of all taxpayers you find the average income is about $225,000, paying an average income tax of $38,500 — nearly 90% of all income tax.
What do the bottom half of taxpayers pay in income tax? They pay just 2% of all income taxes, about $39 billion.
What isn’t in this data is the lowest 20% or so of taxpayers (about 31 million in 2021) get refunds from the people who actually pay tax because many of that lowest 20% get Earned Income Tax Credits or refunds averaging over $2,000 while not paying a penny in tax. EITCs average more than $60 billion annually.
And the rich don’t pay their “fair” share? Your right if you agree. The reality is the “rich” pay way too much taxes in comparison to the middle class, paying taxes at a rate of 10 to 50 times of what the bottom 50% pay.
The bottom 50% of this country’s income earners pay effectively nothing in tax, the top 50% of income earners pay effectively all the income tax in n See Weitzman page A5 me a flight attendant was rushing forward. I told her I was a paramedic and asked if I could help. She said, ‘I need you now.’’’
Allen collapsed near the bathrooms at about the middle of the plane. As Nelson approached he introduced himself to vascular surgeon Dr. Aaron Baker crouched down beside the victim. Joining them were Daryl Braga, an Emergency Department RN at Barton Health in South Lake Tahoe and Roseville anesthesiologist Dr. Brandon Winchester.
“(Baker) wasn’t sure if he could feel a pulse. I opened her airway because she was only breathing about six times per minute. I also felt for a pulse and couldn’t detect one,” Nelson recalled.
“Dr. Baker began CPR and I asked the flight attendant for a defibrillator. She handed me an AED and I attached it to the patient,” he continued. “After stopping CPR I pushed the analyze button. To the surprise of all of us, the AED said ‘shock advised.’ I told everyone to clear the patient and delivered the shock. Within seconds she started breathing regularly and had a strong pulse.”
Nelson, a paramedic for more than 20 years, said he was concerned for Allen’s continued wellbeing as they were still hours away from a hospital. “Often, a patient will go back into the dysrhythmia and require defibrillation or cardioversion again,” he explained. “A patient with this type of emergency needs definitive care at a hospital as soon as possible. The pilot increased the speed of the aircraft and made a downwind landing in the other direction to save as much time as possible.”
Allen and her heroes reunited last month at Kaiser Permanente in Roseville where Nelson said the first thing he did was ask for a hug. “I … told her how glad I was to see her. It was just weeks after the event and I couldn’t believe how well she was doing,” he marveled. “It is obvious she is a fighter and has a strong spirit.”
Allen was incredibly grateful to her in-flight dream team. “It was phenomenal that I had everyone there that I needed; it was meant to be,” she said during their meeting. “You all were just so wonderful.”
Nelson, a Hawaii super-commuter who lives on Maui about 50% of the time, said this is the first time he has encountered an in-flight emergency. Although, in an ironic twist, he said a friend had recently inquired about the exact situation. “It is not uncommon for something like this to happen at work but that’s my job,” Nelson said. “At work I am surrounded by my coworkers, have medical equipment that I am intimately familiar with and hospitals that are minutes away instead of hours.”
He commended all the healthcare professionals who assisted in the life-saving e ort. “We worked together seamlessly and had the best possible outcome.”
Coupal Continued from A4 and 195 (by then-Assemblyman Jay Obernolte, 2015-2016), sponsored by the Howard Jarvis Taxpayers Association. Taken together these bills state that for all local tax and bond measures, the rate of the tax, its duration and the total amount of money to be raised are disclosed right on the ballot label. While SB 532 continues to include most of this information, for local bonds and tiered special taxes it relegates it o the ballot label and buries it in the separately mailed voter information guide. When confronting special taxes that will be on tax rolls for decades, it is imperative that voters have as much information as possible.
SB 532 is another example of déjà vu all over again as it is nearly identical to Senate Bill 268 from 2019. That bill actually passed through both houses of the California Legislature but, in response to a letter from HJTA, Gov. Newsom vetoed it. Municipalities need to be held accountable, and voters are entitled to have before them the information necessary to make an informed decision on proposed ballot measures that directly a ect their pocketbooks. Our hope is that Gov. Newsom’s veto of a nearly identical bill signals to the Legislature that, when it comes to transparency at the ballot box, he stands with HJTA.
Jon Coupal is president of the Howard Jarvis Taxpayers Association.
Weitzman Continued from A4 this country and of that the top 1% pay nearly half of the income tax collected by the Treasury. Let’s put the number in dollars. The total income tax received by the Treasury is $1.7 trillion. Of that amount the top 25% pay in $1.5 trillion, the next 25% e ectively pay the rest and the bottom 50% receive $24 billion (factoring in EITC).
Margaret Thatcher once said, “The problem with socialism is that you eventually run out of other people’s money.” That’s why it always fails. After you take away all the money from people who earn it, then those people will no longer earn it as it will just get confiscated. So why work at all? Eventually no one works and the populace become slaves of the state.
Larry Weitzman is a resident of Placerville.
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