The Democrats are campaigning to address the deficit by raising the income tax rate by 3% on millionaires. The reality is they want it to go up on every family earning $250,000 annually. For discussion sake, let us use the following information:
Fox News Reports:
· Overall Government Spending for 2011 is $3.834 trillion.
· Projected Deficit Government Spending for 2011 is $1.267 trillion
Neal Bortz made an interesting comment. Government figures indicate the average person making 1 million dollars or more a year makes the majority of their money not through earned income, but through Capital Gains. in fact. Mr Bortz reported the average millionaire makes only 6 1/2% of their income from earned income. Capital gains is taxed at a different rate than Income Tax. The only people who this raise in taxes will affect, is those between $250,000 and under $1 million annually. They get the greater majority of their income through earned income.
Another way to look at it is the following;
Let’s assume for argument sake, you earn $1,000,000 from your salaried employment.
- An additional 3% will raise $30,000 in new taxes.
- There are approximately 279,000 households with that income
- This move would raise $8.37 Billion annually
Another way of looking at it,
- The Federal government currently takes in approximately $214 Billion monthly in income taxes, tariffs etc. or $2.567 trillion annually
- Fox projected the total anticipated spending rate for this year to be $ 3.834 trillion or $319 billion monthly. ( we still do not have an approved budget)
- We have a budget shortfall of 1.267 trillion annually or approximately $105 Billion monthly
- In a 30 day month, we are currently spending $10.5 Billion dollars daily of which deficit spending amounts to $3.5 billion daily
The $8.37 Billion we would take in annually from the increased income tax, would cover just over 2 days of our overspending and less than 1 day of our total government spending.
I repeat we do not have an income issue, we have a spending issue. If Politicians do not understand this, they have to go!!!
2012 is coming!!!!!