Skip to comments.Obama's Big 6 State of the Union Tax Myths
Posted on 01/26/2012 4:05:00 AM PST by IBD editorial writer
Taxes: If President Obama wants to create a fairer country, shouldn't he start by fairly portraying our tax code? Instead, he used his State of the Union speech to peddle a number of blatant tax falsehoods.
(Excerpt) Read more at news.investors.com ...
LIAR—Nothing more to see here-—just eat your peas.
Internal Revenue Service data show that families with incomes of $50,000 to $100,000 pay an average 8.9% in income taxes, while those with incomes of more than $1 million pay 23%.
Notice the word “families” and the total absence of the Social Security taxes (based on gross income instead of adjusted income) and the fact that there is an upper limit on SS taxation that is under 100,000 dollars. Make more than that, you don’t have to pay any more than the limit.
This propaganda does not address a single person making the same amount of money and the horrible taxation incurred. I know because I am single and earn a comfortable income.
On the average working American the taxes are based on gross income and attached SS costs go with that. The rich are taxed on net income (mainly investment income) and no SS taxes are accessed due to the fact that the income was not derived from labor. Worse yet, they get enormous tax breaks the average American finds impossible to get.
It’s a game in which the government sets the rules and appeases those who can afford it.
I’m tired of this game and hope and wish that eventually every American, regardless as to their marital status or special perks from being rich and influential, pay EXACTLY the same rate as anyone else with exception.
The only way to do that is by way of a consumption (sales) tax without any exceptions.
MY hope is that the Republicans will take him up on the “fairness” issue and propose a flat tax that is the same rate for EVERY tax paying entity, business and individuals, whether the income is wages, investments, sales, inheritance, capital gains everything. No exceptions, no deductions, no “payroll tax” just ONE flat tax. It would apply if you made $1.5 or $1.5M... same rate.
In the president’s own words then, it would be fair because the rich and the poor would pay the same (he leaves off the word percentage but that’s what he means).
A flat tax will not work. With a flat tax the individual or company must tell on itself...that is, to report their own income.
Criminals, illegals, welfare cheats, unemployment cheats, drug dealers, whores and a whole host of those 40% who don’t pay any income tax at all STILL WON’T. The reason, they simply won’t report their income correctly. That is the very reason a flat tax will not work.
However, a sales tax will work simply because when they purchase anything, the retailer, wholesaler or distributor will tax them on it by the value of the purchase (the exception being a reseller or manufacturer who will resell the product or item through his manufactured product or retail outlet.
The poor pay, the middle income people pay and the rich all pay the same percentage of tax. If they save their money, it’s not taxed until it’s spent.
Can anything be any more fair?
There should be NO other method of taxation, there should be no government fees, no park entry fees, no property taxes... nothing BUT a sales tax.
That said, my statement was that the Republicans should take him at his word to make it obvious that he truly is ONLY concerned with power for himself through class warfare and NOT "fairness" in the tax code.