Tuesday, August 30, 2011

Some common sense on taxing the wealthy

Why is income redistribution ok, when it benefits richies?
Micheal says:
At least in theory, SS and Medicare are their own system. People pay into the "fund" and the "fund" pays out benefits That 32% of the government's spending is, at present, more than paid for by payroll taxes, which are "flat" in that everyone pays the same percentage of income up to $250,000, and, in truth, they are actually unflat in favor of the wealthy, because income above $250,000 is not subject to payroll taxes. So, the 32% of the budget that goes to SS and Medicare should not really be part of the discussion. 

Of the remaining 68% of the federal budget, it looks like a little less than half goes to defense spending. Defense spending benefits the rich almost exclusively. All of the money spent on infrastructure also benefit the rich way more than the poor. 

A simple way of thinking of it is this: The point of government spending is to maintain and enhance the value of America's holdings. Your benefit from that spending is directly proportionate to your percentage of those holdings. The top 20% of this country own roughly 85% of the country's net worth, they should pay 85% of all non-payroll taxes

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