What Are The REAL Numbers the Wealthy Pay in Federal Taxes?

Yeah, Yeah, we know: “The richest one percent of Americans pay little or NO federal taxes. And those evil corporations don’t pay taxes at all.” That’s the story bandied around by the Left for decades. Democrats, during election season, consider that talking point to be their “go-to” to diminish their GOP opponents. Then, if and when they are elected to office, they double-down with it to justify raising BIG taxes by demonizing “the Rich.”

There’s one problem: It ain’t true!

In fact, the much-maligned minority, the richest percent of Americans, pays 39.5% of all Federal Income Tax. That is one of the most eye-catching figures in a study released by the Tax Foundation earlier this month. To put that percentage in absolute figures: the richest percent of American taxpayers pay $542.64 billion of a total take of Federal Income Tax of $1.37 trillion.

We’re talking about just the top one percent of American taxpayers!

This data visualization clearly shows that the top one percent pay much more than taxpayers of any other income level.

  • It is almost double as much as the next bracket of top incomes: those earning the 2% to 5% of the highest wages in America pay 20.5% of all Federal Income Tax. Or in absolute terms: $281.51 billion.
  • It is also almost four times as much as those whose incomes range from the top 6% to 10%. They pay 10.9% of Federal Income Tax, or $149.97 billion.
  • Those who earn between the top 10% to 25% of wages in America are a much larger group. Yet, their collective input into the Federal Income Tax is only half as much again as the previous band: 15.9% (i.e., $281.55 billion).
  • Those with an income anywhere between the top 25% and 50% only pay 10.5% of all Federal Income Tax, no more than $143.95 billion.
  • The entire bottom half of wage earners pay only 2.8% of their income in taxes into the federal coffers. In actual money terms: $37.74 billion. That is more than 14 times less than the top 1%, even though this group is 50 times as numerous.

These figures show the level of contribution to total income tax revenues by the various income levels. The Tax Foundation also provided figures for what that means for individual taxpayers in each group.

  • The effective average tax rate for the richest one percent is 27.2%, meaning that well over a quarter of their income goes into federal coffers.
  • For the next group (up to 5%), the fiscal pressure is just below a quarter: 23.6%.
  • Taxpayers with incomes in the top 10% part with just over one-fifth (21.3%) of their earnings.
  • Those in the top 25% bracket contribute 17.8% of their annual income.
  • Even those up to the 50th percentile on average still give 15.5% of their annual income to Uncle Sam.
  • Because about 45% of American households make too little to pay any Federal Income Tax, the average percentage for the bottom half of incomes is dramatically lower – the average Federal Income tax level for this group is just 3.5%.

Nobody likes paying taxes, and all taxpayers agree that everyone who contributes to the national purse should have some say in how the government raises and spends its money. But in this debate, whose voice should be louder: that of the majority at the bottom of the income scale (who contributes the least) or of the minority of biggest contributors (who fork out the most)? Simply put, that question is the foundation of all politics in a capitalist democracy like ours.

How Do Americans Feel About the Rich and the Tax Burden of the Wealthy?

New Yorkers from Rep. Alexandria Ocasio-Cortez’s district overwhelmingly say the wealthiest people in America pay among the lowest tax rates in the country, which is not supported by data.

“We’re paying too much taxes,” a woman named Lavasquez said to one reporter. “The lower and middle classes, we’re working our butts off, and we’re paying so much taxes, and then you’ve got the upper class, and they’re not paying anything.”

“It’s totally unfair,” said Richard, who works in data analytics. “The bottom percentile of individuals are probably paying the bulk of the taxes whereas you have millionaires and billionaires being able to avoid their share.”

The wealthiest people are “definitely paying the bare minimum if any,” he continued. “I would assume it’s about five percent if that.”

Last week, House Democrats unveiled a proposal to raise taxes on the top sliver of U.S. households. The proposal is part of a sweeping plan to overhaul the nation’s tax code to fund President Biden‘s $3.5 trillion spending bill that includes family and climate change initiatives.

Under the plan released by the House Ways and Means Committee, the top individual income rate would climb to 39.6% for the wealthiest individuals and families. The proposal rolls back a key part of Republicans’ 2017 tax overhaul, which lowered the top individual income rate to 37%.

“I don’t think rich people pay enough taxes,” an audio-visual engineer from New York’s 14th Congressional District said. “They make way too much to get away with making so little.”

A man named Calvin said this: “It basically depends on who you know. There’s a reason why shell companies exist. That’s how you evade taxes.”

One man, Manny, said he thought taxes across the board were “too high” already. He was sure the wealthy “pay their fair share.”

Most people said they wanted a “fair” solution when asked how much the wealthy should pay.

“They should be paying the same amount of taxes as the middle, and lower class are,” Lavasquez said. “That way, it gives us equal share, and no one is feeling singled out.”

Richard said: “If I’m paying a third of my income to taxes, why not the same be applied to millionaires and billionaires? If that’s not fair, then what is?”

Another man said: “It’s not fair to ask them to pay much more than everyone else. I wouldn’t ask for something crazy like half of your money … keep it under 20%, and it would be good.”

According to a Congressional Budget Office report, the top 1% of earners paid an average federal tax rate of 32% in 2017. Tax rates that year declined with income, with the poorest 20% paying an average tax rate of 1%. The Tax Policy Center found similar results.

In 2018, the top 1% of income earners — those who earned more than $540,000 — earned 21% of all U.S. income while paying 40% of all federal income taxes, according to a Tax Foundation analysis. The group paid more in income taxes, about $615 billion, than the bottom 90% of taxpayers combined, or $440 billion.

The data showed that the top 10% earned 48% of the income and paid 71% of federal income taxes.

The share of taxes shouldered by the nation’s richest individuals has climbed over time.

In 2001, for example, the top 1% accounted for 33.2% of the nation’s individual income taxes, according to the Tax Foundation. From 2001 to 2018, the share paid by the bottom 50% of taxpayers fell to 3% from 4.9%.

Summary

Unfortunately, Democrats and their incessant concentration on spreading false news about taxes paid by the wealthy have tricked millions of Americans sufficient to foment anger and hatred for the wealthiest of Americans. There is NO doubt these folks make much money. Some certainly inherited it, while others have worked their way to the top of corporations. In contrast, still others have pursued the American Dream, started companies, worked hard to establish them, and are now reaping the fruits of their investments and labor. But isn’t that what the Constitution offers everyone: “Equal Opportunity?”

There was a recent time in which an atmosphere of freedom in the pursuit of happiness in the nation was not only allowed but encouraged. The nation saw a true entrepreneur in the Oval Office: Donald Trump. Sure, some point to his father giving him a six-figure stake to get his entrepreneurial career started. Those same folks wag their fingers at him because he was not “self-made.” But what they forget is that he turned that one million into billions! That doesn’t happen in countries where U.S. freedoms are non-existent.

Raising taxes does two things and two things only: one, it stifles economic growth — PERIOD. Those “one-percenters” who the Leftists hate decide to stop investing and growing their companies because of the stifling tax liability stop growing their companies! Doing that means that those company revenues begin to flatten or tail off, which means “less money.” Less money means no expansion, which means no new jobs, fewer (if any at all) pay raises for employees, perks for staff disappear, and advancement within their company is no longer available. Secondly, corporate layoffs occur when company revenue slides. Corporations then cut expenses. How? Company layoffs, wage reductions, office closings, etc. That always drives unemployment up, wages down.

What Democrats hate to admit is with federal tax cuts, the exact opposite occurs! They demonized Trump’s 2017 tax cut program that cut taxes on virtually EVERY American. The economic and labor statistics prove what that tax cuts instigated. Besides dramatic improvements across the board, Democrats gnashed their teeth when the thought of any Trump success was mentioned.

So why the problem with the Left? Aren’t they happy when every American see improvements in almost every area of their lives? Answer: No, because all the new revenue coming to the government through federal taxes is happening because of the efforts of a Republican.

Just watch as this Congress — controlled totally by Democrats — struggles to sell the American people the need for massive additional federal spending. And to accomplish that, what is mandatory? More Money. And where does that originate? Federal taxes. And who pays those taxes? The American people.

A short note to Joe Biden, Nancy Pelosi, and Chuck Schumer: Americans no longer buy that totalitarian talking point if they ever did. In fact, instead of Pelosi’s $3.5 trillion spending bill with massive new taxes enacted to fund her pork giveaways, why not LOWER taxes again and take us back to the economic miracles we experienced under Donald Trump!

Hold your breath waiting for a Democrat in leadership to agree that needs to happen.

To Download today’s (Wed. Sept. 21, 2021) “TNN Live!” show, click on this link:

How’s the CARES Act Working For You?

Has it been a surprise to anyone that the CARES Act structure for businesses to apply for benefits using the Act has been anything but bogged down in government bureaucratic red tape? Last Friday was the first day companies could actually file applications for the relief programs under CARES. While the initial application was touted as just being two simple pages, that is just the beginning. Applicants must then go to a participating bank, obtain and then complete that bank’s application for the specific type of program the applicant wants to access, and then begin providing the bank reams of financial records.

Treasury Secretary Mnuchin made it sound like those two pages were all that was necessary to get that ball rolling. In many cases, the ball has even begun to start rolling.

We are following the progress of one California company desperate for help. (I know: it sounds complicated) Friday was the first day they were able to apply for a loan known as the Paycheck Protection Program or PPP, which is part of the two trillion dollar coronavirus stimulus package. It gives small businesses access to short-term cash flow assistance to help cover operating expenses and keep employees during this difficult time.

But as small businesses tried to submit applications over the weekend, many ran into issues with banks like Wells Fargo and were left with no help at all. “This only now just puts me in more distress. It makes me more worried about what my future is because literally my business is 100% shut down. There’s not even a penny coming in, I can’t even pay the rent on my warehouse, and I’ve never been in a situation where I haven’t been able to pay my business,” Michelle Eklof said.

However, Eklof says her bank, Wells Fargo, never had a working application on their website when they launched the program on Saturday. She says she continued to check back several times a day, still nothing. She woke up on Monday, still not able to apply, only to find out that the bank now closed its application process. “I’m angry, I was really counting on this. I was really watching and following their website and believed in them,” Eklof said.

Eklof quickly learned she wasn’t the only one dealing with this big problem.

“Literally a line of people outside the bank frustrated and just asking questions, wanting to know what’s going on. It’s not just me. It’s many Wells Fargo business customers, I mean people were yelling. people are angry,” Eklof said. Others also complain on social media.

When asked what the problems were all about, Wells Fargo replied with this:

“Given the amount of customer interest expressed and our target amount to distribute through the PPP, we have taken the online interest form down. On April 5, Wells Fargo announced it is targeting to distribute a total of $10 billion to small business customers under the requirements of the PPP and will focus on serving two segments of its customer population: nonprofits and small businesses with fewer than 50 employees. “

Wells Fargo did not address questions about links and applications not working on their website or if they would provide alternatives to these customers who never had an opportunity to apply because of website malfunctions.

Here’s the problem: Secretary Mnuchin in the White House nationally televised press conference rollout of this one major segment of the CARES Act that was designed and is impacting so many small businesses in positive ways to get the companies and their employees to the “other side” of Coronavirus and back to work. The Secretary literally made many feel like that two-page application was all that was needed to get those loans started immediately. But then, banks must get involved to manage the process.

Banks did not — at least initially — receive really clear signals from Washington regarding the application process sufficient to satisfy the Treasury. There were vast concerns at the bank level regarding the liability each bank might have in the event something went wrong with those federally backed loans they made to consumers. What if there was a default on loan repayment? What if the bank processed some paperwork wrong? What if applicants provided bogus documents showing fake corporate status and received large amounts of money and then defaulted? What was the liability for banks to be?

With no clear understanding of that liability, banks simply began to demand copious documents and data from these companies and company owners that they felt would be necessary to guarantee that IF there was a default, the bank would not be in the line of fire. Thus, we have massive delays.

Is It Working?

The CARES Act includes, in addition to The PPP which is detailed above, it includes substantial resources for small businesses to help them retain their employees and a sizable fund that the Treasury can use to support larger businesses:

  • A sizable expansion of unemployment benefits, including expansions of who is eligible for benefits and increases both in weekly benefit levels for the next four months and in the number of weeks of jobless benefits that someone can receive.
  • Significant direct payments (“recovery rebates”) to low and middle-income families of $1,200 for most adults and $500 for children under age 17.
  • A $150 billion Coronavirus Relief Fund to help address the large budget holes emerging in states and localities.
  • Substantial investments across a range of existing programs that can help respond to the current crisis, including important new investments in programs to serve people experiencing homelessness and to prevent people from losing their housing.

We have heard reports from a number of individuals (primarily from California) that they received notice from their banks on April 7 that were “pre-advices” of their $1200 “recovery rebates” being deposited into their accounts. The date that those amounts will be deposited and funds accessible were not given.

What’s Next?

Believe it or not, it appears there is going to be a “next.” House Speaker Nancy Pelosi does not feel there was sufficient relief for everyone that needs and deserves financial relief in the CARES Act, and she is negotiating at this moment with fellow Democrats and even Republicans for another relief package. In fact, she appeared with Rachel Maddow of MSNBC and discussed the immediate needs of Americans for more, what Pelosi wants to see in such a package and when might Americans see it in the pipeline:

What’s Next…

We all know what’s next: “Coronavirus Stimulus IV.” What will it include? Nancy will once again back-up the swine truck and load the bill with pork. She’d never do that, right?

  • $100,000,000 to NASA
  • $20,000,000,000 to the US Postal Service to payoff their debt
  • $300,000,000 to the Endowment for the Arts
  • $300,000,000 for the Endowment for the Humanities (I’ve never heard of it)
  • $15,000,000 for Veterans Employment Training
  • $435,000,000 for mental health support
  • $30,000,000,000 for the Department of Education stabilization fund
  • $200,000,000 to Safe Schools Emergency Response to Violence Program
  • $300,000,000 to Public Broadcasting / NPR
  • $500,000,000 to Museums and Libraries
  • $720,000,000 to Social Security Admin, of which ONLY $200,000,000 goes to recipients. The balance is for “Administrative Costs” — $520,000,000.
  • $25,000,000 for Cleaning supplies for the Capitol Building (I know it’s unbelievable. You can find it on page 136)
  • $7,500,000 to the Smithsonian for additional salaries
  • $35,000,000 to the JFK Center for Performing Arts
  • $25,000,000 for salary increases  for the House of Representatives
  • $3,000,000,000 to upgrade to the IT department at the Veterans Administration
  • $315,000,000 for State Department Diplomatic Programs
  • $95,000,000 for the Agency of International Development
  • $300,000,000 for International Disaster Assistance
  • $300,000,000 for Migrant and Refugee Assistance (pg 147)
  • $90,000,000 for the Peace Corp (pg 148)
  • $13,000,000 to Howard University (pg 121)
  • 9,000,000 Miscellaneous Senate Expenses (pg 134)
  • $100,000,000 to Essential Air carriers (pg 162)
  • $40,000,000,000 goes to the “Take Responsibility to Workers and Families Act.” (Pg 164)
  • $1,000,000,000 Airlines Recycle and Save Program (pg 163)
  • $25,000,000 to the FAA for administrative costs (pg 165)
  • $492,000,000 to the National Railroad Passenger Corporation (Amtrak) (pg 167)
  • $526,000,000 Grants to Amtrak to remain available if needed through 2021 (pg 168)
  • $25,000,000,000 for Transit Infrastructure (pg 169)
  • $3,000,000 Maritime Administration (pg 172)
  • $5,000,000 Salaries and Expenses for the Office of the Inspector General (pg 172)
  • A clause that ratifies there is No voter ID necessary to get a ballot to vote. It also establishes and makes legal the anonymous “ballot harvesting” process (pg 650)
  • $2,500,000 for Public and Indian Housing (pg 175)
  • $5,000,000 for Community Planning and Development (pg 175)
  • $2,500,000 for the Office of Housing
  • $1,500,000,000 for the Tenant-Based Rental Assistance Office of Public and Indian Housing, $billion of which can be used as “additional administrative and other expenses.” (pg 176)
  • $720,000,000 to the public housing fund (pg 177)
  • $100,000,000 for Community Block Grants for Native Americans (pg 183)
  • $250,000,000 for Housing Block Grants for Tribes (pg 182)
  • $130,000,000 for AIDS Housing (pg 185) $20,000,000 of which goes to “one-time grantees”  (pg 186)
  • $15,000,000,000 for the Community Development Fund (pg 188)
  • $5,000,000,000 in Homeless Assistance (pg 193)
  • $100,000,000,000 for Rental Assistance (pg 198)
  • An additional $7,000,000 to enforce the Fair Housing Act (pg 203)
  • $227,000,000 for grants to States for “youth activities” (pg 80)
  • $261,000,000 for grants to States for dislocated worker employment and training activities, including supportive services and needs-related payments (pg 80)
  • $10,000,000 for the Migrant and Seasonal Farmworker program
  • $100,000,000 for ‘‘Job Corps.’’
  • $15,000,000 for ‘‘Program Administration’’
  • $6,500,000, to the ‘‘Federal Wage and Hour Division.’’
  • $30,000,000, to OSHA
  • $10,000,000 for Susan Harwood training grants
  • $1,300,000,000, for ‘‘Primary Health Care’’
  • $75,000,000, for ‘‘Student Aid Administration’’
  • $9,500,000,000, for ‘‘Higher Education’’

Just in case you forgot, all of this was added to the CARES Act so the Senate could get House Democrats to vote for the bill. What bill? You remember: The bill that was to save all Americans from the ills of Coronavirus and to make sure small companies and everyday Americans were taken care of!

I put that list of “Nancy’s Corona-Pork” so all will remember when we roll out “Corona-Stimulus IV.”

I know that’ll make your day MUCH better!

Saturday Bullet Points: January 11, 2020

Wow! 2020 is not even two-weeks old and the news has taken off: Impeachment, Soleimani and Iraq attacks, Iran destroying a Ukraine jet with a missile, and Democrat hatred not just for Donald Trump but now for Trump supporters! What else can happen?

Don’t worry: there’s a lot of 2020 remaining. This year is certain to be full of breathtaking “gotcha'” moments, especially in Washington. And each Saturday, TruthNewsNetwork will bring to you a synopsis of that week’s news in bullet points. You’ll be able to scan the headlines we present, and for those stories about which you want details, click on a link for complete details.

Let’s get started!

Bullet Points

These should catch you up on the really big news on a national scale for the week. Enjoy that Saturday morning cup of coffee and scan the headlines and/or read the in-depth details of whatever stories catches your interest.

Have a great weekend!