There is more to know than you see on your check stub, more than you see on your tax return, more than you see on your quarterly estimated taxes, more than you see at the gas pump. The following numbers from usrevenue.com bring some clarity to taxes in the US.
Federal Budgeted Revenue 2011 (Federal Government Income)
Income Taxes: 1.154 Trillion
SS/Med/Ins .806 Trillion
Ad-Valorem .133 Trillion
Business/Other .079 Trillion
Fees/Charges .001 Trillion
Total: 2.173 Trillion
53% is from personal income taxes paid by citizens
37% is from personal & employer SS, Medicare, or Gov. Ins. paid by citizens & employers
6% is from ad valorem: Fuel, Inheritance, Tariff, Leases, and other value-based taxes
3.6% is from corporate/business taxes
0.04% is from use fees or charges
53 % of all federal revenue is paid up front by us
16 % is deducted from our pay for social insurance
21 % is paid on our behalf by or employer, but ultimately it is passed back in the cost of products
6 % is paid by companies and passed on to us in the cost of products
4 % is paid by companies and passed on to us in the cost of products
Use fees or charges are paid by citizens directly to federal agencies, for the privilege of using (our) public land.
The fact is that we as citizens and consumers pay either directly or through hidden taxes the full $2 trillion in annual federal revenue. Business pays nothing, because they have to cover the cost of taxes in the price they charge for the products or services, which we pay. In addition they must bear the administrative costs for reporting and paying the taxes, again a cost coming to us in the price of the product or service.
There are a total of 311 million citizens, so the average citizen is paying $6987.00 this year in federal taxes. For a family of four the average is $27948.00. Averages however can be deceptive, for taxes are not paid evenly, in fact over 40% of all federal taxes are paid by just 1% of taxpayers, those in the highest income bracket, and a full 97% of taxes are paid by 50% of taxpayers, those of average income and above. Only 3% of taxes are paid by those in bottom 50% of the income scale.
It is just plain ignorance that people believe the rich should pay more taxes; each of us who make less than $410,000.00 are already being heavily subsidized by those who earn more than that.
Those that would increase corporate taxes to “redistribute the wealth” obviously don’t understand that a business tax is just a hidden tax on the consumer, and an overhead cost that takes investment and growth money out of businesses.
To foster a robust economy there should be no taxation of business. People should not have to send their social services money to the government; it should go into their personal accounts. There should be no hidden taxes; citizens should know exactly what they pay in taxes. Business would boom, prices would decrease, consumer power would increase, and personal wealth would increase.