Politics

Myths From D.C. Part 2: ‘The Rich Need to Pay Their Fair Share’

Jan. 3, 2013 8:00am

- Americans for Prosperity Foundation

Jason Hughey is a policy analyst for the Americans for Prosperity Foundation. His research areas include federal tax, budget, and housing policy.

Myths from D.C. Part 2: “The Rich Need to Pay Their Fair Share

Barack Obama, Warren Buffett (AP)

From Barack Obama to Elizabeth Warren to Warren Buffett, we have been barraged over the past year with the outlandish claim that, “the rich need to pay their fair share.” The problem? The rich already pay much higher shares of taxes than anyone else. The evidence is simply overwhelming on this issue.

Perhaps the most recent research that has been done from the Tax Foundation. In a chartbook entitled, “Putting a Face on America’s Tax Returns,” the Tax Foundation shows that the wealthiest 10% of individuals in the United States pay 70% of the nation’s income taxes. That means the rest of American citizens only combine for 30% of all income taxes paid.

The Congressional Budget Office, an entity with no pretenses of free market analysis whatsoever, confirms the fact that the rich already pay a substantial majority of taxes. In fact, according to the CBO’s numbers, the wealthiest 1% of Americans paid 22% of all taxes in 2009. Meanwhile, the bottom 20% of Americans only paid 0.3% in all federal taxes.

The point of this is not to say that the poor should pay more taxes–nobody’s taxes should be raised. Rather, the point is to demonstrate that political rhetoric which encourages us to make the rich pay their “fair share” is completely unsupported by relevant evidence on taxes. If there is really a magical concept of “fair share” in regard to taxes, the rich already pay way more than that.

Unfortunately, this anti-wealth mantra has proven pretty successful with politicians. John Boehner has already admitted that “the rich will pay more in taxes” once a fiscal cliff deal goes through. It’s a shame that such false and deceptive rhetoric has become the basis of a major policy negotiation.

Jason Hughey is a policy analyst for Americans for Prosperity.

 

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Comments (30)

  • charles116
    Jan. 9, 2013 at 8:26pm

    Apples and Oranges, as usual.
    Give it a rest already.

    Report this comment

    charles116  
  • dnewton
    Jan. 6, 2013 at 4:09pm

    I never hear anyone say what a fair share is or exactly how it is calculated. The problem with progressive taxation is that the rich eventually pay more than their fair share because their activities don’t require the government to pay more than the rich person actually pays. The fact that they can afford it fails to see the damage done by a system that has need and cost disconnected. In a stable economic system, the market sets the price of a commodity and that price assures a constant flow of goods to or services to serve a need provided that the cost, or true cost is covered in the price. If a rational fraction of the true cost is not covered, the service or commodity begins to disappear. If the cost is artificially raised over the cost of production, the cost of the good or service begins to make other goods and services less available. For some reason, the Left never sees anything wrong with excess profit when it comes to taxing the rich.

    Report this comment

    dnewton  
  • cmonnow
    Jan. 4, 2013 at 1:51pm

    as a progressive who stands to inherit a whole lot of money, I have to thank the Republican party for ensuring that I can inherit up to $10 million dollars tax free. I would also like to thank the President for reaching that compromise. The United States is a great country to be rich in. Now I can be assured of having much more than I expected and I have much less pressure to work extra hard. Very happy that my grandchildren won’t have any worries paying their tuitions – no matter the increase.

    Report this comment

    cmonnow  
    • ReviveUSall
      Jan. 5, 2013 at 12:07pm

      You will soon learn that money goes to where it is treated best. As you proclaim to be a progressive, you do not have the ability to treat money well. First evidence is your boastful post about your inheritance (if it is indeed true). The last thing a responsible person would do is announce to all who can hear that “I am getting a bunch of money I did not work for and I am so stupid that I think generations of my family will benefit from my unearned gains”. I am starting to think that “progressive” = “stupid”. Anyway, you did not work for the money, so you have no concept of it’s value. Also, depending on your age and lifestyle you think you may enjoy, your president and this administration have turned $10 million into pocket change, so don’t get too comfortable, it won’t last – especially since you will be receiving it after Jan. 1, 2013. You are a fool if you think your president won’t take at least 35% of it on the first day, and run the federal bureaucracy for a good 20 – 30 seconds with it. If you have consulted a tax attorney and received this advice that your $10MM is tax free, I suggest you find another “expert”. Sadly, the assets you will be inheriting have already been taxed once – when your family member earned it. Now, it will be punitively taxed a second time because 535 people in Washington have proven they are incapable of treating money wisely, yet feel entitled to your family member’s money again. You will soon be on our side – we will

      Report this comment

      ReviveUSall  
    • IvanK
      Jan. 5, 2013 at 11:38pm

      CMONNOW,
      I stand to inherit 20 Million. The rest of the posters here stand to inherit 100 Million. See, we can make up stuff too to make a point. I find it quite amusing that liberals make up stories to push an agenda. The truth just work in a land of fantasy liberalism does it?

      Report this comment

      IvanK  
  • roadhog
    Jan. 4, 2013 at 11:45am

    Old senile fart Buffett has been fighting with the IRS over a billion dollars he owns.

    Report this comment

    roadhog  
  • geo01
    Jan. 4, 2013 at 9:29am

    .
    TAX THE RICH WAS A SMOKE SCREEN…….
    .
    Yes, let’s compare how many taxes will be collected through the 2% increase of ordinary, middle class taxpayers.
    .
    What the rich will pay will be miniscule compared to what the middle class will “donate” to the cause.
    .
    It is time that everyone pay the same tax rate…..so POLITICIANS CANNOT USE TAXES FOR THEIR POLITICAL GAIN.
    .
    I do believe that Mr. Obama said there would not be “one more dime in taxes” for the middle class.
    .
    HE LIED TO US. To me Politicians lying to their constituents is a crime.
    .
    IMPEACHMENT WILL DO JUST FINE……thank you.
    .

    Report this comment

    geo01  
    • turkey13
      Jan. 4, 2013 at 10:55am

      I just want to know if Warren Buffet paid the $ 1.2 billion his investment firm owes the IRS! He was all for the Rich paying more yet uses the loopholes to skimp on his part. Last I heard was that he was still contesting what he owes. Lindsey Lohan just ent to jail on the txes she owed fr 2009. If it was us little people we would have tax lein on our homes and bank acct. frozen. Its like Bloomburg wanting all of the little folks to give up their guns, yet keeping his 4 armed bodyguards.

      Report this comment

      turkey13  
  • nothinghere
    Jan. 4, 2013 at 8:59am

    well it’s pretty clear why we seen buffet,and rampant hollywood campaign fund-raisers,and donations,they made off with billions,in the fiscal-cliff agreement,they were lobbing for their share of the crony capital give away.
    remember that when to go to the movies,and pay $10.00 for a ticket,you paid to make the film,and you paid to watch it.
    these truely caring americans standing up for the middle-class.
    if you ever thought you were going to more get money out of buffett,your a complete idiot.

    Report this comment

    nothinghere  
  • sbenard
    Jan. 4, 2013 at 12:36am

    Economist David Rosenberg today released his analysis on the “fiscal cliff” deal. He said that the tax hit on the rich will cost the US economy 1.5% of GDP. That will leave the economy at stall speed and barely positive for 2013. He pointed out that, despite what we are told by liberals, taxes on the rich have a GREATER detrimental impact on the economy than taxes on the middle class. Thus, taxing the rich more hurts the economy to a greater extent.
    Trouble this way comes. BIG trouble!

    Report this comment

    sbenard  
    • mikem1969
      Jan. 4, 2013 at 1:10pm

      Ah, but you see, that’s just it. The liberals and progressives are a bunch of liars and they have created a base of idiots that believe blindly all they are told. Free thinkers like us are their enemy because we research things and find facts and then slap the libs in the face with the facts. Then we get to listen to them call us all kinds of names and give us all kinds of threats that if we did the same we would be in jail. The left wants the economy to melt completely down so their next phase can be implemented. Watch what the left hand is doing while the right reveals itself.

      Report this comment

      mikem1969  
  • Tepeyac
    Jan. 3, 2013 at 9:41pm

    The new tax bill doesn’t effect Buffett at all! I dont’ agree with the new tax bill at all, but Obama covered his ass with this one.

    Report this comment

    Tepeyac  
  • CommonSense41
    Jan. 3, 2013 at 8:45pm

    Who is Warren Buffett? He is a hypocrite-a big one. The guy made tones of money under Capitalist system. Now, when he became old and not all body function works he became a saint. He wants so called ”rich”- little bit more than $250,000.00 for a couple- pay more taxes. Their “fare” share. Does he want to destroy his country where he was able to make himself one of the richest men in the world? Did he loose his mind? One photo he looks like a happy idiot. A lot of rich businessmen in Russia gave a lot of money to Bolsheviks. Bolsheviks killed or expel most of them after they overturned legitimate government.

    Report this comment

    CommonSense41  
    • shortnsweet
      Jan. 3, 2013 at 9:03pm

      It’s time to implement the 2nd half of the Warren Buffett plan!!!!!!!!!!!

      Warren Buffett, in a recent interview with CNBC, offers one of the best
      quotes about the debt ceiling …

      “I could end the deficit in 5 minutes,” he told CNBC. “You just pass a law
      that says that any time there is a deficit of more than 3% of GDP, all
      sitting members of Congress are ineligible for re-election.”

      Report this comment

      shortnsweet  
    • loriann12
      Jan. 4, 2013 at 8:50am

      That’s the difference between a liberal and a conservative. A liberal, once he climbs the ladder of success, he kicks the ladder out so he’s the only one of a few elite that are up there. Conservatives are more than willing to help someone else get up that ladder, too. Buffet doesn’t actually EARN money, so he won’t be affected by this tax hike. From what I understand, he makes a living off interest now.

      Report this comment

      loriann12  
  • Silvertruth
    Jan. 3, 2013 at 8:05pm

    What the heck? I’ve seen a lot of really strange arguments for the ‘fleece the rich’ before but never some impossible to define argument like ‘the burden isn’t equal’. I have no idea what liberal site you got this from but it’s the WORST argument for increasing taxes on the rich.

    The only logical end to this argument is to forcibly TAKE all their belongings, all their income and all their gains and force them to live a $50,000 a year lifestyle. THAT would equalize their ‘burden’ so they were in the same boat as everyone else. This argument, my friend, is the core argument for Communism and Marxism… it even surpasses Socialism’s ratcheting progressive pay increase. Even Socialist France’s socialist courts are balking at the 75% rate and your logic leads to even worse robbery.

    Go back to basic logic 101 and rethink your point. Don’t EVEN try to defend it unless your next words are “I am a Communist and I believe that all people should live exactly the same lives and work for the common good only. There is no room for individualism.” That is a defendable (but completely checked out from reality) position, the “Burden” one is not… not even remotely.

    There is no definable ‘burden’ test you could possibly come up with that would be fair to ANYONE that makes an income above the ‘average’.

    Just for facts sake, the largest ‘burden’ placed on the system is by those NOT giving into it, the 53% that actually pay into it are NOT a burden to it

    Report this comment

    Silvertruth  
  • South Philly Boy
    Jan. 3, 2013 at 7:01pm

    Elitist are EXEMPT

    Report this comment

    South Philly Boy  
  • taylorbower
    Jan. 3, 2013 at 5:46pm

    Does anyone know what % of the income the top 10% earn and what % of the wealth they control. The fact that they pay 70% doesn’t tell me anything.

    Report this comment

    taylorbower  
  • zoro51
    Jan. 3, 2013 at 5:15pm

    this is socializm IMPEACH OBAMA for theres NOT proof of a class war ONLY BLACKS WILL DIFFER CAUSE THEY HATE WHITEY.. OBAMA CARES LESS ABOUT AMERICA remove the NON AMERICAN BORN SOCIALIST NOW FREE AMERICA

    Report this comment

    zoro51  
  • schroeder123
    Jan. 3, 2013 at 4:49pm

    Giving 10% of my 30 K is a burden to me.
    If I had a billion dollars and made a million a month, Giving 10 % of my earnings is nothing. No Burden.

    where does it stop. ? What is fare ? Is it ,,,,,burden and hardship,,,,,, or the percentage. ?
    Bottom line. We have corruption ans over spending in the government.

    Report this comment

    schroeder123  
    • Al J Zira
      Jan. 3, 2013 at 5:03pm

      Well, if there was a flat tax then your thought process and question would be valid. But since we have a progressive tax system the whole argument of fair share is a farce.

      Report this comment

      Al J Zira  
  • Blazer58
    Jan. 3, 2013 at 4:41pm

    I have mention this in the past. If they really wanted to tax the real rich, they would do a wealth tax(assets) Not a income tax. The politician know they need their blood money and that comes from real rich. Smoke and mirrors is all they know how to do ,and it worked on you one more time.You really think they care about you ? Money from donors is all they care about. So all you POS fans, why not ask about a real tax on the rich. A WEALTh TAX.
    Then you will see how much he really cares about you . By the way you just had your taxes go up. That is how much he loves you. Taxes and more taxes, free money comes from you. ” I will not raise taxes on the middle (uneducated) class.”

    Report this comment

    Blazer58  
  • wanttruth99
    Jan. 3, 2013 at 4:30pm

    I would really like to see a breakdown similar to the federal tax to see which income brackets pay how much, but have it for all taxes (not just income) including sales, property etc… I’ve already seen the one on all income tax, but that doesn’t cover all taxes.

    Report this comment

    wanttruth99  
  • omgfolks
    Jan. 3, 2013 at 4:11pm

    There is no myth, yeah they put up more Dollars, HOWEVER NOT THE SAME BURDEN of THE DOLLAR. That is the point, if the burden on others is 35% that is what they should pay. This glorifying the amount paid rather than the BURDEN PAID is nothing new to the rich. THEY THINK THEY ARE ENTITLED TO PAY LESS SIMPLY BECAUSE THEY MAKE MORE, THERE IS NO DIFFERENCE THAN THE GUY ON WELFARE THINKING HE IS ENTITLED. Just another lame excuse, The BURDEN IS THE POINT NOT THE AMOUNT OF DOLLARS…

    Report this comment

    omgfolks  
    • AvengerK
      Jan. 3, 2013 at 4:50pm

      Oh I see..it’s not the amount of money they’re paying..it’s “the burden”. What you’re saying is that the most productive sector should suffer more perhaps? Are you saying the most productive sector should pay more money in so as to “ease the burden” on the less productive sectors? It’s all about “burdens”..not economics. You’re advocating punative taxation is that correct?

      Report this comment

      AvengerK  
  • republic2011
    Jan. 3, 2013 at 3:28pm

    The hell with Warren Buffet.. May he rot in hell with the rest of the treasonous bastards he surrounds himself with.

    Report this comment

    republic2011  
    • shortnsweet
      Jan. 3, 2013 at 9:08pm

      Email the following to all of your liberal friends who believe in taxing the rich………..
      Warren Buffett, in a recent interview with CNBC, offers one of the best
      quotes about the debt ceiling …

      “I could end the deficit in 5 minutes,” he told CNBC. “You just pass a law
      that says that any time there is a deficit of more than 3% of GDP, all
      sitting members of Congress are ineligible for re-election.”

      Report this comment

      shortnsweet  
  • NHwinter
    Jan. 3, 2013 at 3:24pm

    Why is it that the great mass of uninformed Americans can’t understand that the “wealthy” already pay much more than their fair share? Is it just laziness and the desire to take what someone else has worked for? That is just unethical, immoral, and unAmerican.

    Report this comment

    NHwinter  
    • Fubared
      Jan. 3, 2013 at 3:44pm

      That is lefty in thought and deed though. Whine, cry, demand. It’s what they do.

      Report this comment

      Fubared  
  • John.Galt
    Jan. 3, 2013 at 2:26pm

    Are you sure the rich will pay more in taxes? It didn’t work well for FDR, who was PISSED that his tax increases on the wealthy DID NOT INCREASE REVENUE. Yes, you read that right. FDR increased the top marginal rate to over 90%, AND REVENUES DECLINED…

    We call them LIB-TARDS for a reason. YES, LIBERALS ARE THAT DUMB!

    Report this comment

    John.Galt  

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