As We End 2007 and Enter an Election Year…
Posted on December 31, 2007
Filed Under Politics |
We have politicians talking about raising taxes on the rich because they aren’t paying enough.
I always prefer facts to rhetoric so the numbers as reported by the IRS are interesting to examine.
For the tax year 2000, prior to the current administration for those blinded by political hatred…
The top 1% of tax payors paid 36.18% of all income and payroll taxes. This group made more than $293,000 for the year 2000.
The bottom 50% of tax payors paid 4% of all income and payroll taxes. This group made less than $26,000 for the year 2000.
Now, jump forward to the tax year 2005 (2006 analysis will be reported in 2008)…
The top 1% of tax payors paid 39.38% of all income and payroll taxes. This group made more than $364,000 for the year 2000. This is an almost 9% increase in taxes with a 24% increase in income.
The bottom 50% of tax payors paid 3.07% of all income and payroll taxes. This group made less than $31,000 for the year 2000. This is a 25% drop in taxes with a 20% increase in income.
So, what happens when Charlie Rangle and Hilary Clinton get their way? What happens when tax percentage rates are increased? Well, have historical data for that too!
When the Clinton tax increases were enacted in 1993-1994 we saw the rich actually reduce their taxable income and pay less of the percentage of all taxes than they did under the prior administration.
This isn’t hard to understand. They simply changed their holdings and income strategy to defer taxable compensation and income until a more favorable climate existed. And no, you can’t keep the taxes high and wait them out. It simply does not work.
We are going to see taxes go up if the democrats have control of Congress and the Whitehouse. There is just no way around it. When it happens it will push us deeper into a recession or back into a recession if we have pulled out of the current one. Just like it did with Clinton when he took over.
The only thing that saved Clinton’s economic legacy was the Republican take over of Congress in the 1994 elections.
As Yogi Bara says, “It’s deja vu all over again!”
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7 Responses to “As We End 2007 and Enter an Election Year…”
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I see you are nothing more than another conservative zombie. I am glad you posted this before I joined your field guide site. I bet everything there is worshipful of the conservatives. We are taking our country back and you can bet your ass we are going to make sure you are paying what ever we decide your fair share of the tax burden is. I think people like you are pathetic. I will never read your blog again!
Hillary ‘08! Can’t Wait!
Hmmm, that is a rather strong reaction to a few numbers that came from the IRS there, CM.
Conservative? Yes, I am a fiscal conservative. But, I am a social liberal and Constitution literalist.
There isn’t really one political party expressing my position on all things. That means I have to segment and prioritize the parts that are important to me.
Conservative Zombie? Hardly. I did vote for GWB both times but, my God man, look at the other choices!!! Look at what a fraud Owl Gore is over this nonmanmade global climate stuff. Do you honestly think he would’ve done a better job preventing another 9/11 type attack? Then Kerry in 2004? What in the world were the democrats thinking?
But, here’s the thing. Political leanings aside, the democrats have said time and time again they will raise taxes as the first order of business in 2009. I have no reason to doubt they intend to do that.
Therefore, given I think it is inevitable we are going to have a democrat in the Whitehouse and the projected tax environment that goes with that, I think it is reasonable to examine how that is going to affect the money coming into the treasury in taxes. Because, what do you think they will do if the increases don’t have the desired affect? Do you think they will reduce spending? Nope, I don’t either, they will like try to raise them again.
As to the Field Guide, we have expert authors of all political and social persuasions. They are authors for us because they are experts in their respective areas and political preferences don’t even enter into the interview process.
I can’t tell you what percentage of the membership leans left or right politically because I don’t know. I do know we all lean toward wanting to make money from our investments and that is what binds us together as a group.
Not going to read my blog eh? Well, that’s okay I’m pretty certain my self esteem does not depend on you being a reader.
CM, I am an Obama supporter but I am also a member of the field guide because it makes me money. I have been a member there for months and I don’t remember a single political discussion. I do not even remember politics coming into an investing topic.
Thanks, Kendra.
If two people agree on absolutely everything then one of them is not needed in the discussion.
I gotta be honest here on two things:
1) I’m a conservative democrat. Or, is it liberal republican? Or, is it Independent? Or, is it……? My point is, I’m not set for any party because I vote for who I think would do a better job. Oftentimes, I don’t think any of them would do a better job but that’s because not enough Americans would stand up and demand for better people to run.
2) Real Estate and Politic. Eh, me thinks they should stay separate similar to Religion and Politic but hey, it’s kinda hard to keep them separate if the society demands otherwise.
I’m a member of Field Guide and Magic Bullets. I don’t recall seeing political discussion(s) on Field Guide. Magic Bullets staff had to monitor much heated debates that almost destroyed member relationships.
Like I said, I think Real Estate and Politic should stay separate but that’s just my opinion.
Once again I have found a good post of yours
Politics does affect investing but political discussion and political activism is not my purpose here.
I have definitive political leanings but this blog is not my forum to affect political change. It is my soap box to talk about whatever I want to talk about and it is usually related to investing.