The federal government is funded by YOU, the taxpayer not the politicians. For tax year 2006, taxpayers with adjusted gross incomes above $31,987 paid 97% of the totalpersonal income tax into the Treasury. Those making less than $31,987 AGI paid 3% of the total tax received by the feds. In fact the top 10% of taxpayers with AGI between $109,000-$153,500 paid 71% of the personal income tax paid. The top 1% those with AGI of $388,800 or more, paid 40% of the total personal income tax. You can check out the figures at the National Taxpayers Union website www.ntu.org/main/page.php
Alison Acosta Fraser & Curtis Dubay at the Heritage Foundation recently sent a memo to President Elect Obama encourgaing him to promote growth and restore fairness to the federal income tax system. www.heritage.org/Research/Taxes/sr29.cfm
Cut taxes for everyone, and do not increase taxes on those who are most likely to save and invest. Your plan is to pay for the income tax cuts provided to 95 percent of workers with (1) a tax increase on those who make more than $250,000 and (2) another set of unspecified tax increases. This short-sighted class-warfare argument unfortunately appealed to many Americans, but it would mean raising taxes on key investors and business owners. Higher taxes on these Americans would make it more costly to expand, innovate, and invest, so there would be fewer new factories, fewer new products, and fewer jobs for American families.
The income tax, moreover, is already highly progressive. Those who earn over $250,000 already pay about 48 percent of all income taxes, yet you would raise their taxes to have them pay an even greater share. On the other hand, 43 million tax filers--nearly one-third of the 135.7 million who filed in 2006--paid no federal income taxes at all after credits, deductions, and exemptions.
Your promise to cut taxes on 95 percent of Americans struck a strong chord with voters, and your pledge to lower the capital gains tax makes strong economic sense. If you follow the right steps to cut taxes--cut marginal income tax rates for all taxpayers, lower or eliminate capital gains taxes, and kill the death tax--you will allow all taxpayers to keep more of their money, improve fairness, and also take strong steps to encourage economic growth. This is important at any time but essential in this troubled economy.
Cutting taxes only for the selected groups you targeted in the campaign and then raising them for high-earners will not generate the growth America needs. Your first priority when taking office must be to help stabilize a flagging economy, and that means lowering taxes for all Americans.
Bonzer wants to see the bailouts end and the tax cuts begin. This is the ONLY way we are going to end the recession and restore the United States to capitalism, which made us the greatest economic power on earth. Democratic SOCIALISM does not work.