Amongst the protests and the opinions, one message has clearly emanated out of the “Occupy Wall Street” protests: The rich (1%) don’t pay their fair share, and should be taxed to establish fairness.
Looking at fairness as simple equality, (e.g. you take one half of the pizza, I take the other) there is a dirty little secret, the 1% already pay their fair share.
According to an analysis by the Tax Foundation (http://www.taxfoundation.org/files/ff104.pdf) the top 1% of income earners make 21% of all income in the US.
OUTRAGE!!! How dare so few people make so much!!! Tax them!!! Take the money away!!! Our government needs it!!! Obviously they make so much at the expense of my job!!! I have a diploma, I deserve a job!!! Tax them!!!
But overlooked in the midst of this envy induced social froth, is the fact that the 1% not only pay their fair share they pay more than their fair share. By the same analysis cited earlier, the top 1% of income earners pay 39% of all income taxes collected by the US Federal Government. Furthermore, the top 10% pay 70% of all incomes taxes collected.
The math is simple, but our education system is poor, so I must point out the obvious conclusion: the bottom 90% (126 Million People) cover only 30% of all income taxes collected.
And finally this “evil” 1% of taxpayers, pays on average, 23% of their total income to the federal government. The bottom 90%, pay on average, 9% of their total income. And the bottom 50%, only 2%.
How is that for “fairness?”
The problem is not the greed of Wall Street. The problem is the envy of a populace conditioned to think they deserve and are entitled to the benefits of financial largess. An entitlement gained through no qualification of their own, but only as the result of being born into a world where some have more than they do.