Time to resurrect the figures from 2010
Obama’s Income Cap
Don Pettygrove 2010
myself becoming more and more disgusted with the liberal left haters in
this country. It seems the primary objection that they have is that
there are others, not them, that have been blessed with abilities that
they have put to their fullest and best use and made significant sums of
I arrive at this perspective by listening to
the objections of the Obama administration and virtually all of his
supporters that I have spoken to. Virtually all of them express anger at
the “large corporations”, “military industrial complex”, “big
business”, “rich”, “wealthy”, “fortunate”, “big oil”, and any number of
other “bigs”. This all appears to be nothing more than pure and simple
jealousy that some have made it big and done so well in life while they
have been relegated to the mediocre, mundane “average”.
president wants to punish all of those that have succeeded in life as
if they have come into others homes and stolen what they have from the
“less fortunate”. He is going to punish the bankers, the oil barons, the
investment advisors and as he put it in his campaign, anyone that makes
more than $250,000 (or $200,000 depending on the instance). That,
apparently, is where he draws the line between anything that is a
responsible wage and those that are just in it to selfishly take from
others even though they already have “enough”.
little research on the Treasury Department web page, one can come up
with some interesting facts, though the complainers do not like facts
because they tend to disprove much that they have built their jealous
hatred upon. The latest data available is from the 2007 tax year.
quest concerned what would the effect of Obama’s desire to cap pay at
some arbitrary level as he has indicated he would. I was interested in
this because Obama wants to redistribute the wealth and give it to
others less “fortunate”. Suspecting that those who make significant
wages pay the bulk of income taxes in the country, I wanted to determine
how much of the federal income would be destroyed were Obama to
I chose arbitrarily, the magical $1 million
dollar income level to evaluate. This is four times his stated value of
“wealthy” but an interesting point to evaluate as it turns out. Treasury
Department records show that the point at which half the total income
is above and half below turns out to be roughly $160,000 annual income.
At that point roughly $3 trillion dollars of income lies above that
earnings level and the same amount below.
point that I chose ($250,000) has roughly 21% of the total above and the
remaining 79% below. At that income level, those above that point pay
roughly 28% of the total income tax collected. This, contrary to common
perception, is well more than their fair share of taxes. If Obama
decided he wanted to cap the income of individuals at $1 million, that
would translate to a reduction of income taxes paid to the federal
treasury of roughly $310 billion. Total income taxes paid in 2007 was
$1.115 trillion. This results in the treasury loosing 27.8% of its
revenue by not allowing anyone to make more than $1 million. This would
affect the tax returns of only 391,261 out of 96,270,000 total returns
or 0.4% of the total returns.
I found it quite amazing
that the top 0.4% of income earners in this country paid 27.8% of the
total individual income tax paid. Who says that they don’t pay their
fair share of taxes? I am offended that anyone could ever make such a
totally wrong headed and idiotic statement. Another amazing fact is that
all income earners below $200,000 taxable income pay roughly the same
amount of total tax but it takes 91.7 million returns to provide the
same amount as the top 391,000 taxpayers do. What is fair about that?
interesting fact is that of the 48.5 million tax returns filed by
individuals making $50,000 or less, only slightly more than 3 million
actually pay any taxes at all. Keep in mind that that is $50,000 in
taxable income, after all deductions.
The end result
of all this is that were Obama to be successful in his desires to punish
the “rich” and cap their income, even at the “exorbitant” level of $1
million, he would end up with an additional annual debt of $310 billion
dollars by in effect, taxing it away. Does this jealousy make any sense
The looters talk about the greed of the "rich"
yet one definition of greed is covetousness of what someone else has and
has earned. The looters don't care about what one earns. To them, if
they have more, it is ill-gotten gain. They must redistribute it because
someone else would have had it if the person that has it hadn't. How
ludicrous that argument is. There are millions of new dollars of new
wealth created every day through the work and toil of people. Nothing is
lost, it is all gained by work.
Happy 4th of July 2017
8 months ago