Much is heard from the Liberals in Congress and especially from President Obama that we need a "Balanced Approach" to control our Budget. As part of the "Balanced Approach" the tax rate on the highest earners needs to be raised so they pay their "Fair Share". Highest earners are those making over $250,000 for a Married Couple and $200,000 for a single earner.
So what is the "Fair Share" for these people? According to the IRS, for 2008 (the latest year available) the top 1% paid more than 38% of all Income Taxes while the top 5% paid almost 59% of all Income Taxes. (source The Tax Foundation) To be in the top 1% you have to have at least $380,354 Adjusted Gross Income while $159,619 and above is the top 5%. It might be noted that the bottom 50% pays less than 3% of all Income Taxes. These represent Adjusted Gross Income of less than $33,048. (Nice to know that if your Adjusted Gross Income is more than $33,048 you are in the top half of all Income Tax Payers and you are part of the group that pays better than 97% of all income taxes.
To me a "Balanced Approach" would mean more Income Taxes on the 50% who pay less than 3% not higher Income Taxes on the 50% who pay over 97%. There may be a growing difference between the richest and the poorest in America, but the emphasis should not be on limiting the top, but rather raising the bottom. If this happened, we would have a better distribution of the "Fair Share" for Income Taxes paid.
We need to eliminate the Loopholes in the Tax Code which carve out special individuals and groups to receive unfair Income Tax Benefits. We do not need to limit the top earners who are the job creators. We need to make more opportunity for the rest of us to reach the top earning levels by letting everyone retain more of their earnings through a more fair and lower Tax Rate.
Increasing the Tax Rate for the Richest Taxpayers will have the same effect as cutting the top off most plants. Growth Stops because (except for the Grasses) the top is where all the growth happens.