He lost me when he said the poorest working Americans were the most highly taxed.
It is very simple, assuming you can handle math at the 3rd grade level. We are talking about percentage of income, not total dollars.
Think of it this way, for '07 I will pay, literally, hundreds of thousands of dollars in Federal Income tax. That is, indisputably, a significant amount of money. Most people take out morgages and work 30 years to pay off that kind of money. But, what portion of my total income does that represent? In other words, if we divvy up the 100% of my work year, what percentage goes to ‘me and mine’, and what percentage goes to society?
Calculated that way, my tax rate as a percentage of income is among the lowest. And I actually pay more than most tax payers in my income bracket. For example, last year I bought another vintage GA plane, but did not take advantage of the “yacht loophole” here in CA to avoid paying our 8+% state sales tax.
There are three big reasons that I pay a lower total tax rate than most the people who work for me. First, unlike the vast majority of Americans, I do not live paycheck to paycheck, so a significant chunk of my income comes from investment, which is taxed at a significantly lower rate. Working income, particularly the first 100K or so, is among the highest taxed.
Second, again because I don’t live paycheck to paycheck, the bulk of my income is not subject to consumption side taxation. State sales taxes, license fees, fuel taxes, whatever. This one does not make sense at first glance. I buy some very expensive things, so it would seem reasonable to assume I’d pay high consumption taxes as well, but…
Third, the system is rigged in my favor. As I mentioned, in CA, the average smuck may pay sales tax on his car, but the rich and famous generally don’t pay it on their yachts and airplanes. And this is just one of a countless set of loopholes and exceptions.
The reason that the working poor pay the most are exactly the opposite. Virtually every dime that they make is hit with payroll taxes and consumption taxes, they generally have higher out of pocket expenses (ex. I get great health care coverage from a fictional person, primarily controlled by me), and don’t get far enough ahead to get the perks. By the middle class, you are paying income tax, but you are also probably getting things like the morgage interest tax credit, which is a large perk for beginning to accumulate generational wealth.
There is nothing particularly difficult about this. It isn’t even controversial, provided one go beyond a squawking head level of understanding. Both conservative and progressive think tanks come up with pretty much the same numbers as the GAO.
And, of course, all of this avoids the real issue. The concept of correlating wealth and earning power to one’s value to society is distinctly un-Christian and un-Catholic. We are called to join the poor in spirit. Religious priesthood requires a vow of poverty.
All the normal straw men appeared - ‘you want the government to do it!’, ‘I can’t add…’ But when all the wailing and rendering of clothes subsides, we still have an ideology that is distinctly at odds with the teachings of Jesus as presented in the New Testament.
My question was, and remains, is this distinctly non-Christian ideology actually believed, or is it just and rationalization for one’s own conduct? In other words, does Vern really believe that the difference between our socio economic positions truly mean that I am harder working and more deserving? Is my value and importance to society truly so high that our system should be primarily structured for my benefit? If the answer is no, then we have to take a hard look at the word “Hypocrisy”, which is, of course, the original subject…