Re: 2012 Elections - Fear is the mind killer. Fear is the little death....
43% of all income earned comes from the Top 10% of earners, 44% from 10-50. I'd call that a wash.
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Let's make sure I first understand your statistic. If we take 1,000 working people, then 50% of them have 87% of the total earnings?
If you, then you have reinforced the point I made earlier: tax rates on everyone have to go up. You cannot get anywhere near what you need by raising taxes on only the top 1%.
I've never said, "don't increase their taxes," I've merely said "you are naive or disingenuous if you think that you can increase
only their taxes." We aren't even arguing about spending cuts, either!! Obama's budget has spending increasing by 4.5%, Ryan's budget has spending increasing by 3.0%. Only in DC or in politics can an increase of 3.0% be called a "cut."
You don't show what fraction of earned income goes to the top 1%. Let's just say it is 20% for convenience. They are already taxed on average at 20%.
If total income is $1 trillion, then taxing the top 1% at 30% (the proposed Buffett rule) instead of 20% -- a 50% increase -- brings in an incremental 2% of that $1 trillion...."Only" $2 billion more.
If we increase the tax rate on the top 87% by 10%, you bring in $87 billion more, or 335% more.
HINT: the answer is "both." First you go after the top 1%, then once you are safely ensconced in office for a second term, you say "oops" and go after the rest...."I'll have a lot more flexibility when I no longer have to answer to the voters."
Now, you are a money-sucking vacuum cleaner that cannot say no, which do you go after: $2 billion or $87 billion?