MCViewPoint

Opinion from a Libertarian ViewPoint

Who Pays What in Taxes?

Posted by Martin C. Fox on October 18, 2017

https://www.lewrockwell.com/2017/10/walter-e-williams/who-pays-what-in-taxes/

Politicians exploit public ignorance. Few areas of public ignorance provide as many opportunities for political demagoguery as taxation. Today some politicians argue that the rich must pay their fair share and label the proposed changes in tax law as tax cuts for the rich. Let’s look at who pays what, with an eye toward attempting to answer this question: Are the rich paying their fair share?

According to the latest IRS data, the payment of income taxes is as follows. The top 1 percent of income earners, those having an adjusted annual gross income of $480,930 or higher, pay about 39 percent of federal income taxes. That means about 892,000 Americans are stuck with paying 39 percent of all federal taxes. The top 10 percent of income earners, those having an adjusted gross income over $138,031, pay about 70.6 percent of federal income taxes (https://tinyurl.com/yddvee2o). About 1.7 million Americans, less than 1 percent of our population, pay 70.6 percent of federal income taxes. Is that fair, or do you think they should pay more? By the way, earning $500,000 a year doesn’t make one rich. It’s not even yacht money.

Our nation has a 38.91 percent tax on corporate earnings, the fourth-highest in the world. The House of Representatives has proposed that it be cut to 20 percent; some members of Congress call for a 15 percent rate. The nation’s political hustlers object, saying corporations should pay their fair share of taxes. The fact of the matter — which even leftist economists understand, though they might not publicly admit it — is corporations do not pay taxes. 

If a tax is levied on a corporation, it will have one of four responses or some combination thereof. It will raise the price of its product, lower dividends, cut salaries or lay off workers. In each case, a flesh-and-blood person bears the tax burden. The important point is that corporations are legal fictions and as such do not pay taxes. Corporations are merely tax collectors for the government.

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I am not a number. I am a free man!-Number 6

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