Who pays Federal taxes?

WHAT IS A FAIR SHARE OF TAXES?

WILL GOVERNMENT EVER HAVE ENOUGH REVENUE?

We continuously hear about all those people who don't pay any taxes or don't pay their FAIR share. Fair share has been a very vague term that I have never heard anyone explain what constitutes fair share. There are a lot of statistics on taxes. I believe the numbers on taxes are likely still accurate. 

The Federal government took in $3,464,000,000,000 in 2019, that's almost 3.5 Trillion if all those zeros have overcome you. The government spent $4,448,000,000,000. That amounted to a budget deficit of $984,000,000,000. The indicates that 23% of the money spent was either funded by borrowing or just created out of thin air. This is what creates price inflation which is the devaluing of the money you earn, save or invest. So to just balance the budget in 2019, it is a lot worse today, taxes would need to be raised 23%. How would you like a 23% tax increase? That is why the government will tell everyone, you will not be taxed, it will be the other guy who will pay the tax.

Increases in  taxes are paid in effect by everyone, if not directly, but through higher prices needed to charged, or less spending on investment to supply products or a decline in the value of your money. I could go on and on, but taxes are paid collectively more than the government would like you to believe.

Where do government taxes come from:

1.  Individual taxes     50%

2.  Payroll taxes          36%  this is social security, medicare etc.

3.  Corporate tax           7%

4.  Other                        3%

5.  Excise tax                 3%

Which earners pay the biggest percentage of taxes.

Top 1%    39%  of federal taxes

Top 5%    59.6%

Top 10%  70.6%

Top 25%   86.6%

Top 50%   97.2%

Effective tax rate is the actual tax paid after exemptions and all the other fine print in the massive tax code. this is for Federal income tax not including payroll taxes.

$1. to   25k       2%

25K to 50 K   6.1%

50k to 100k    9.3%

200k to 500k  15%

500k to 1m     22.6%

1m and up      25.9%

Corporate tax rates are always a target, but keep in mind corporations can move out of the country,shift production out of the country and increases in taxes will translate into a increases in prices. Also the government then taxes any dividends or capital gains earned by shareholders. It is in effect double taxation. 

Government has always attempted to pit one group against another, Promising they are only going to tax the rich, everyone but you. 

Government spending on projects promises jobs and growth, but no government spending promotes growth, it may translate into temporary jobs, but it is financing these jobs by taking money from someone else, so in effect no net wealth is ever created. It is just transforming the economy from the private sector to the government sector. Infrastructure projects should be paid for with surplus funds, not by borrowing or passing the cost on to everyone's children.

More government spending and taxing is going to translate into more inefficiency, more inflation and in a net decline in the wealth of the nation.