What Is Your ‘Fair Share’?
You’ve heard it from the whole spectrum of Democrats—from the rich hypocrites like Bernie Sanders and Elizabeth Warren and to hapless spenders like Joe Biden who are just horrible with money. They all declare that the wealthy need to “pay their fair share” in taxes.
And, actually, they might be correct about this, but their definition of “fair” is starkly different from ours at the Breitbart Business Digest.
Based on Tax Year 2023 data (the most recent available), the top one percent of earners—those with adjusted gross income (AGI) above roughly $675,000—make 20.6 percent of the wealth and pay 38.4 percent of all federal individual income taxes. This puts their average federal income tax rate at about 26.3 percent.
The top 10 percent of taxpayers (minimum AGI of about $187,000) accounted for 47.6 percent of total income and pay over 70 percent of federal income taxes paid. Their average federal tax rate stood at about 21 percent. The top 50 percent received 88 percent of total adjusted gross income and paid 97 percent of all federal individual income taxes; their average tax rate was 15.57 percent.
It’s irresistible to point out that the bottom 50 percent of taxpayers contributed only 12.3 percent of federal income taxes and face an average tax rate of just 3.7 percent, which meant they paid a total of 3.3 percent of the national tax haul.
So, what exactly is “fair”?
Technically, “fair” would be a flat tax rate that is uniform for all income earners. This would further incentivize people to earn money because they will keep more of what they make. We’re not going to go as far as to suggest that option, at least not in this particular edition of the Breitbart Business Digest (in fact, the U.S. would be wise to amend the tax code so that it isn’t quite so easy for the ultra-wealthy to manipulate the system to limit their liability), but can we please knock it off with the “pay your fair share” nonsense?
Today, Tom Steyer, who is likely to be the next governor of California despite his lack of any charisma whatsoever, said, “Billionaires like me and big corporations need to pay more in taxes, because too many Californians are struggling to get by.”
Do you think Steyer cut an extra check to the IRS this year beyond his legal obligations, as is his right as an American citizen? Of course you don’t, and only a low IQ individual would assume he did.
When will elite Democrats pay their fair share?
Did You Know That Donald Trump (Most Likely) Put More Money in Your Pocket?
There have been major updates to the U.S. federal tax code for this year, many of which stem from the One Big Beautiful Bill Act (OBBBA) and the Working Families Tax Cut.
Here are just of some of the changes this tax season:
- A seven-bracket structure was locked in with a 37 percent top rate. Without the OBBA, rates would have risen, and brackets would have narrowed.
- Standard deductions for individuals, married couples, and heads of households all went up significantly.
- No tax on tips up to $25,000.
- No tax on overtime.
- Additional $6,000 deduction for seniors.
- Auto loan interest deduction for qualified U.S. made vehicles.
- State and Local Tax (SALT) deduction cap increased to $40,000 from $10,000.
- The estate tax deduction was raised.
- The Child Tax Credit was enhanced, as well as the adoption credit and the credit for health savings accounts.
- Many business deductions, like the bonus depreciation for equipment, were made permanent or restored. Additionally, a 100 percent bonus depreciation is available for qualified investments.
The list goes on and on.
Unless you were wildly benefitting from some clean energy tax credit that got phased out, you probably saved money this year.
But do Americans know any of this? Our honest opinion at the BBD is we’re not sure.
With consumer sentiment at an all-time low and with seemingly every other topic under the sun dominating the news cycle, it seems clear that either people are unaware that Trump probably put more money back in their pockets or that the lingering financial concerns weighing down many American families have simply overwhelmed the good news.
Though this is widely expected to be the biggest tax “refund season” in American history, only time will tell if it is enough to shift the vibes in the American economy.
Read the full article here