If you’ve listened to any of the 2020 Democratic candidates, you’d think the rich are skating by and not paying their fair share of taxes. You’d assume they were fully taking care of loopholes so they don’t have to pay a dime, when the poor and middle class are carrying the brunt of the taxes. Well, according to new data from the IRS, the rich do pay well more than their fair share.
The top 1%, the ire of so many Democrats who believe they skate by, actually pay 39.5% of all federal income taxes. That’s a rate 20.6% higher than the income they actually bring in. The lower 50% of the rest of earners in this country only pay 2.7%. In comparison, it’s not even close. The rich do pay way more than their fair share.
So, the question remains why the Democrats keep acting as if this isn’t the case. Why do Bernie Sanders and Elizabeth Warrant continue to go with the narrative that the rich are skating by and taxing them even more will bring out a bit of financial equality? Together, the bottom 90% of all income earners only pay 29.1% of all federal income taxes.
When you really look at it, it makes sense. Most Americans on the bottom end of the scale actually pay very little in taxes and often take more in benefits. Their net contribution is a negative number. The top 1% pay more than the entire middle class combined. Where the Democrats are getting their information is confusing.
Capital investment is how the system works. If you want to create more jobs and improve wages, then investment is key. As businesses grow, there will be an increased need for labor, so they hire more workers. As they expand and invest more money into their business, suddenly thousands of people have jobs and a business can really become a town’s lifeline.
Also, capital investments require business owners to purchase equipment and make other buys in other industries that creates other jobs to make that equipment and others to sell it and marketers to promote it. This is what makes America great and rich people with capital to spend make the entire system go and prosper.
Without rich people, you don’t have a job. If we start cutting in business profits, then that starts to downgrade the whole system. While Democrats decry a tax cut for the wealthy, they propose increasing taxes many, many times over to pay for their socialist agenda programs they know will garner votes. To get it done, they stoke the flames of anger towards the rich who have all the things and money they want. They espouse class warfare talk about wealth inequality.
But they hate the very people who help them keep the lights on and put food on their tables. Another Democrat lie is that cutting taxes and trickle-down economics has never worked. Both President Kennedy and Ronald Reagan cuts taxes, even for the 1%, and saw a major economic boom. They won’t get the economy better than it is by heavily taxing the rich who already contribute way more than their fair share.
This discrepancy might also be why President Trump won in 2016. The Democrats lost a lot of support from the unions and white-collar workers.