Republicans say that the bottom 50% of the population income wise pays less than 3% of the taxes (some pundent said that). I have also heared people talk about how the government is set up to make certain groups of people unrealistically wealth (the didn't earn it). The supposedly do this through inflation and monetary debasement.
For me it is hard to understand which group of people is getting screwed. Any thoughts?
I will be back later tonight to reply. I have class.
I think what you are trying to figure out is who is in that group that is getting screwed. Well, the people in the group change all the time. One day, person A is reaping in millions in government contracts, the next day, the government is taking it away from them. So, sometimes the rich get screwed and sometimes the poor get screwed, but there is always someone who benefits from the screwing of others by the government.
To paraphrase Marc Faber: We're all doomed, but that doesn't mean that we can't make money in the process. Rabbi Lapin: "Let's make bricks!" Stephan Kinsella: "Say you and I both want to make a German chocolate cake."
The income tax is progressive. That means someone who has a higher income owes a larger percentage of that income than someone who has a lower income. I'm not sure about that 50% figure, but it doesn't sound very far off the mark.
As for inflation, when money is created out of nothing it doesn't raise prices uniformly and instantly. It's a slow, gradual change as people adjust their valuations to the new money supply as demand curves are pushed up.
So if the Federal Reserve tomorrow decides to print off a billion dollars and give them to you, that new money you just received still has the same purchasing power as any other money. Economists call this newly-printed currency "High-powered."
As you spend your new money, it slowly works its way through the system and the value of it lowers to its actual value. The adjustment happens in the order through which the money makes its way through the system.
However, the adjustment tends to happen in prices before it is reflected in wages. If the price of food doubles, but your hourly wage stays the same, then you're kinda screwed. Those who receive the money earlier gain at the expense of those who get the money later.
Not only that, but a constant rate of inflation makes saving and accumulating capital impossible, as it causes the value of your savings to literally evaporate while it sits there. In an inflationary environment, it makes much more sense to just consume existing capital than to produce more.
In the long run inflation screws everyone. Plain and simple.
Azure:The income tax is progressive. That means someone who has a higher income owes a larger percentage of that income than someone who has a lower income
This is also true if the tax is not progressive.
As long as the tax is in %, you will pay proportionate to your income.
Hairnet: Republicans say that the bottom 50% of the population income wise pays less than 3% of the taxes (some pundent said that). I have also heared people talk about how the government is set up to make certain groups of people unrealistically wealth (the didn't earn it). The supposedly do this through inflation and monetary debasement. For me it is hard to understand which group of people is getting screwed. Any thoughts?
The middle class and small businesses.
At most, I think only 5% of the adult population would need to stop cooperating to have real change.
Can someone get me a source that say exactly how much the average person pays in taxes, I've been under the impression now that it's about 20-30%
My father used to pay about 20% but he was boderline poor so....
The Late Andrew Ryan: Can someone get me a source that say exactly how much the average person pays in taxes, I've been under the impression now that it's about 20-30% My father used to pay about 20% but he was boderline poor so....
A quick look at Wikipedia says the top bracket pays a 35% Income tax. Here is the source Wikipedia cites on the matter, though counting other taxes realistically a person will probably pay more.
If this is true, this is just another way that politicians spin facts to make you think that they are right. The median US income is $32,140 (in 2006). By using just one standard deduction in 2006 of $5,150. Thus, only $26,990 is taxable. This falls into the 15% tax bracket from 2006. Thus this person pays $4,048 in taxes. This is such a small absolute amount compared to the people that have higher wages and fall into higher tax brackets. A person who makes $2,000,000 pays enough taxes for almost 175 median Americans, or $700,000. Remember the $4,048 is the most tax paid by the lower 50% of earners. As a fun note, almost a full 10% of wage earners, with only the standard deduction, will pay no taxes.
So in my opinion, first, this figure MIGHT be correct because of the progressive nature of our tax. These people pay from 0-15% while those harder workers pay 25-35%. Second, it would be true because the absolute amounts paid by the lower earners only comes to a small percentage of the whole.
The government is set up to make two groups of people unrealistically wealthy. First, those who are wealthy enough or smart enough to find and take advantage of loopholes in the law. Hint, those that write them leave loopholes for themselves. Therefore, they are usually the first and most fitting recipients.
More importantly, those who get uninflated money before it inflates (those paid with newly created money). This is usually banks, lenders, contractors, and others who are paid with new fiat money.
Hope this isn't too dry and helps!
Thank you for the great answers all.
I have concluded that big business men screw one another whenever they can. Poor people can get benefits and live off the state. If they try to do this they will run into a lot of invisible walls.
So basically middle class, small businesses.
It's important to bear in mind that the wealthy often have more tax write-offs, as well. In theory, the richest 10% would pay 50% of the taxes, without them, but that isn't the case.
The Rev
Lifes a piece of shit, when you look at it
Life's a laugh and death's a joke, it's true
Just remember it's all a show, keep em laughing as you go
Just remember that the last laugh is on you
A wise conclusion.