A taxing situation
I've heard it said that 1% of the wealthiest people pay the majority of the tax burden in this country while 45% pay no income tax whatsoever. And this is probably true.
Some argue that a flat tax is needed, where everyone pays the same. So if the government wants $1 trillion in taxes, instead of 1% of the wealthiest paying the majority of it, they should collect $3300 from every man, woman and child in the country. And to the flat tax believers this would be the fair way to go. But is this fiscal insanity to believe they are right?
Now, let's look at an analogy of 1000 people gathered in your local high school football stadium. 1% of them are the wealthiest people, whom control about 99% of the dollars in this country. At this time there is to be $1000 distributed among the 1000 people. Ten out of the 1000 people, the 1 % of the wealthiest out on the field, would get $99 each. The other 990 people would have to split the remaining $10 dollars which gives them each one penny. Ok, let's tax these people. Where would you start if you needed to collect $5 in taxes from the original $1000?
When Republican Eisenhower was President, the tax on the rich was as high as 92%, there were rules and regulations on corporations and yet our country prospered. Yes, the rich paid the majority of the taxes then - much more than they do now.
Thanks for your time and attention.