IBD ^ | 05/02/2012 | REP. CHUCK FLEISCHMANN
President Obama insists his so-called "Buffett Rule" — which cannot even pass the Democrat-controlled Senate — is a serious proposal, not just an election-year gimmick.
Let's consider the facts.
If enacted, the IRS would take 30% of every dollar earned by a targeted subset of the population — in this case, people earning more than $1 million per year. We're told this is necessary because highly successful Americans just aren't pulling their weight or paying their fair share.
This line of reasoning begs the question: Is it fair for the IRS to take 30% of anyone's paycheck? Keep in mind that we're discussing only the federal income tax. Add up all the other federal, state and local levies, and some people could lose 50% of their income to tax collectors! That isn't fair, it's punitive.
According to data from the Treasury Department and the Joint Economic Committee (JEC), Americans with an adjusted gross income exceeding $1 million in 2009 paid an average effective income-tax rate of 24%. That same year, families in the ballpark of $40,000-$50,000 paid an average of 5.3%. It was 11.6% for those making $100,000- $200,000, and the incomes in between predictably fell within that same range.
We've all heard the anecdote about Warren Buffett and his secretary, but it is incredibly misleading to claim an epidemic of high earners paying lower tax rates than the middle class. As the president likes to say, this is not my opinion. This is basic math.
(Excerpt) Read more at news.investors.com ...
