Why do the wealthy pay so little tax as a % of AGI?

iVillage Member
Registered: 10-25-2006
Why do the wealthy pay so little tax as a % of AGI?
21
Tue, 02-08-2011 - 3:24pm

After randomly checking the tax paid as a percent of AGI in about 12 of these wealthiest zip codes, I confirmed that the weatlhiest 2% need a tax increase, not more tax cuts.

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http://www.pnhp.org/news/2009/october/meet_the_new_health_.php

http://www.youtube.com/watch?v=DQTBYQlQ7yM

iVillage Member
Registered: 03-30-2007

Yes, we have a New Republican Governor.

iVillage Member
Registered: 03-03-2009
Thu, 02-10-2011 - 10:11am

You write "I don't know of a singe rich liberal who voluntarily pays more...because they can afford to".

Jabberwocka

iVillage Member
Registered: 04-21-2004

The wealthiest know the tax loop holes.

We use the tax code to reward desireable behavior. We want people to run businesses, so there are dedctions for business expenses. We want people to give to charity, so there are deductions for donating to charity. The list could go on and on. These are the "loopholes" you talk about.

If I am creating jobs, investing in research, donating to charity, and generally making things better for my community, my state, my country, why is it a "loophole" when the government lets me keep a little extra money to do more of those things?

The term loophols is a lot like the term special interest. People always think the tax deduction they get is justified and only right. The tax deduction that other guy got is a loophole!


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martinisnsushi - the two most important food groups!

iVillage Member
Registered: 03-18-2000

Good article.

Here's a snippet from this link....

http://sociology.ucsc.edu/whorulesamerica/power/wealth.html

>"A remarkable study (Norton & Ariely, 2010) reveals that Americans have no idea that the wealth distribution (defined for them in terms of "net worth") is as concentrated as it is. When shown three pie charts representing possible wealth distributions, 90% or more of the 5,522 respondents -- whatever their gender, age, income level, or party affiliation -- thought that the American wealth distribution most resembled one in which the top 20% has about 60% of the wealth. In fact, of course, the top 20% control about 85% of the wealth (refer back to Table 1 and Figure 1 in this document for a more detailed breakdown of the numbers).

Even more striking, they did not come close on the amount of wealth held by the bottom 40% of the population. It's a number I haven't even mentioned so far, and it's shocking: the lowest two quintiles hold just 0.3% of the wealth in the United States. Most people in the survey guessed the figure to be between 8% and 10%, and two dozen academic economists got it wrong too, by guessing about 2% -- seven times too high. Those surveyed did have it about right for what the 20% in the middle have; it's at the top and the bottom that they don't have any idea of what's going on."<

 


Photobucket&nbs

iVillage Member
Registered: 10-23-2010
Sat, 02-12-2011 - 12:17am

Obama said he would pay for his proposed new programs, including mandatory health insurance, by imposing higher taxes on "the wealthy" and raising the tax on Social Security wages.

iVillage Member
Registered: 07-11-2006

Great link. It is going to take me a while to plow through it! Thanks for sharing. It discusses clearly the differences between wealth and income.

iVillage Member
Registered: 03-02-2009

So what? Looks like people are not aware of the percentages. Big deal. I don't really care if Bill Gates or other rich people have $1 billion or $100 billion, doesn't effect my earnings.

What is the point? Is it that since they have more money than people thought they had, we should get together and take it from them?

"Resist, we much. We must, and we much. About that, be committed."

Avatar for xxxs
Community Leader
Registered: 01-25-2010
apples and oranges Tony! These are two very different ways of looking at it but the actual truth is both. As an individual the actual of paid income tax by percentage in that person's income vs the group as a whole. Actually by raising taxes the net income differential is enough to put this country into the black.

dragowoman

Avatar for xxxs
Community Leader
Registered: 01-25-2010
Actually no. Remember the Victorian: those who gain the most have the responsibility.

dragowoman

iVillage Member
Registered: 03-02-2009
Sun, 02-13-2011 - 12:40am

I'm not really sure about what you are saying.

"Resist, we much. We must, and we much. About that, be committed."