Golden goose develops persistent cough:
In 2007, 390,000 tax filers reported adjusted gross income of $1 million or more and paid $309 billion in taxes. In 2009, there were only 237,000 such filers, a decline of 39%. Almost four of 10 millionaires vanished in two years, and the total taxes they paid in 2009 declined to $178 billion, a drop of 42%.
Yes, spread the wealth:
Those with $10 million or more in reported income fell to 8,274 from 18,394 in 2007, a 55% drop. As a result, their tax payments tanked by 51%. These disappearing millionaires go a long way toward explaining why federal tax revenues have sunk to 15% of GDP in recent years. The loss of millionaires accounts for at least $130 billion of the higher federal budget deficit in 2009.
It is going to get worst – not just because of the economy, but sooner than later, more and more boomers will be retiring. While some may work, they will not be earning at the rate that they do now and governments cannot expect the same taxes from that group. I plan on retiring in the next 3 to 5 years and my income (and the taxes I pay on that income) will also drop.
Governments have a couple of choices – tax wealth (which will be interesting – you want to see angry seniors, go ahead and do that); cut back on all types of entitlements along with non-essential programs and services; increase overall taxes, or get more people working.
None are good options, but as a society we need to start addressing this NOW.
I recall some fella calculated back in the 60’s that if the net worth of everyone with a net worth of more than $100,000 was redistributed to the rest of the population, with no administartive costs….those fortunate ones would get the price of a large pack of smokes.
In reality, administrative costs would consume the entire confiscation.
Note the basis was net worth not net income.
Thanks much for the link!
flat tax…ALL citizens, higher personal exemptions for each member of the family and that’s it…everyone pays some tax except for the lowest income earners that don’t make more than the family’s available deductions and the net revenue goes up
Flat tax for everyone. Everyone then has an incentive to earn more. Set limits on what all levels of government can take by percentage of GDP. I would suggest 20%.
I would love to hear Ann’s commentary on the meter maid silly cervants here in Whitehorse wearing a hardhat to ticket citizen’s parked cars!! Of course, for the safety of fools a helmet law for bike riders (the peddle type) is on the books here in the ‘last Frontier”. Many people choose the Obama look – many don’t and the silly cervants can’t seem to enforce that law.
I wonder if the “Iwon” is still smoking tobacco (another ‘banned’ item here in the land of the over-governed) – if he has quit this fact might be a partial explanation for his irrational behavior – Champex or Zantec….Champex is a very behavior/personality modifying hard drug.
The goose may be ‘down’ however, she is also has a cold (as Kate mentioned).
Actually, Maureen, John Maynard Keynes suggested a wealth tax back in the 1920’s. When what he referred to as the rentier class accumulates so much wealth that government budgets are strained to pay the interest, he recommended what he called a “capital levy”.
But in a way, the Bernank is implementing one by stealth. Between understating inflation, and seeing the US dollar index plunge from 120 under W. to 74 today, he’s effectively confiscating huge amounts of wealth from bond holders.
But to the article’s main point: the loss of a hundred thousand multi-million incomes. Did it not occur to anyone that many of those high income earners were the fraudulent bankers and mortgage lenders? Since they essentially stole a lot of that money, I have to think that them earning less is a good thing. Of course, some hefty fines would be a nice addition, but that won’t happen.
Bemused and Joe, agreed. Just about every member of society should pay some income taxes. If too big a segment of society does not pay income taxes they become addicted to entitlements and want more and more entitlements. We are seeing examples of the entitlement mentality in Europe.
And Obama is continuing to whine about taxing more of the ‘rich’.
He would tax them until they have no more money which means it must have finally gotten redistributed to the people who don’t pay taxes.
Ya, that makes sense. Pretty soon there will be no one in America with enough money to have to pay any taxes. What then?
Ken
“We are seeing examples of the entitlement mentality in Europe.”
I see it in my own familly!!
Gee, why aren’t the trolls here to defend Barry? Didn’t Barry say the rich have to pay their “fair share”, and isn’t Barry The One?
Joe said: “Set limits on what all levels of government can take by percentage of GDP. I would suggest 20%.”
Joe, I would suggest 5% max. The idea is not to fund government, the idea is to -starve- it.
They likely ‘vanished’ to other countries where their money bought more and their businesses could better profit from significantly lower labor costs.
No doubt many of them left with US government bailout/subsidy money in their pockets.
American taxpayers have been paying them to take away their jobs.
Isn’t that the classic example of shooting at your feet in a rowboat?
Good thing the Warren Buffets and Matt Damons of America are ready and willing to pick up the slack.
meter maid silly cervants here in Whitehorse wearing a hardhat to ticket citizen’s parked cars!!
That’s normal in most cities. The hard hats are likely dayglo orange or yellow. Anyone whose job takes them into traffic on foot must wear high visibility headgear and vest. A dayglo orange hunter’s cap probably meets the standard as well. That’s good common sense and in most worker safety regulations.
Who would have a problem with that?
BO shares the blame with 544 other duly elected ‘leaders’ who seem to be more beholden to the ‘influence’ of lobbyi$t$ and $pecial intere$t group$, than their constituents. NO government money can be spent without the approval of Congress, the POTUS only sets the budget. The Republican majority could reduce any government spending they wanted to and the POTUS could do nothing about it.
The GOP House majority has the power to solve this problem, but they don’t have the cohones to do it.
You keep eating your chickens till they go extinct. Seems the byword on the Hill these days against the rich.
None though think themselves rich even when their in the top 10%. BUt of course being public servants they havent the tax burdon of regular tax payers.
So pile it on till your productive class just moves away.
I would suggest 5% max. The idea is not to fund government, the idea is to -starve- it.
~The Phantom
Spot on.
The flat tax has to be enough so that the poor who vote for more taxes to fund their welfare habit feel the bite, I’d say close to 10 percent but I’m an Albertan and think the GST should be abolished.
I would prefer 0% income tax and 10% GST
User pay. The more goods and services you consume, the more tax you pay.
I suspect the disappearing act is the billions owned by the millionaires is disappearing into offshore bank accounts.
just evidence of another loophole. why is it economical for sports heroes to incorporate? BECAUSE GUESS WHO PAYS THE HIGHER TAX RATE.
@ revnant dream
quote…BUt of course being public servants they havent the tax burdon of regular tax payers…unquote
WHERE do you get off saying that ?
public servants pay taxes the same as anyone else…probably more becaused they can’t hide their income under the table…then they get the dubious pleasure of paying for the CPP which they can’t collect when they retire…in effect, paying for yours instead.
Public Service salaries are not tax free
Public Service pensions are paid for by the recipients, the same as any corporation, usually at a higher rate…it’s the politiicans pensions that are the ‘gold plated’ ones, not the file clerk in his office.
Military salaries are not tax free
Military pensions are not tax free
It’s be nice if the liebral party returned the $30 billion + that they stole from the Public Service, RCMP and Military pension funds in order to ‘balance’ martini’s budgets…the ‘balance’ that ran out as soon as the money he stole to produce it did…
so sorry you don’t meet the requirements to qualify for a government job but whining about those who do and likely type up your benefit cheque, is just sour grapes from someone with no idae what they’re talking about…
do we need to trim the gov’t workforce ? most assuredly. We can start with all the departments that write cheques to people that don’t work for them or who work against the country and still demand to be paid for doing it…the ‘artists’, the layabouts, the special interest groups, all of the rest that produce nothing but demand the ‘government’ pay them…well, I’m the government, I pay my taxes so art gallerties can buy a paint stripe for $5 million…so seperatists can get paid for asking to leave…so people with no clue and no interest in working can get monthly cheques…so citizens of convenience can demand free trips ‘home’ when they aren’t even living here…so the khadrs and their ilk can demand that anyone not following their ways all be killed but line up for free health care once they’re wounded trying to kill us…
grow up kid, get a job and find a new scapegoat, Public Servants aren’t stealing your money, it’s the ones they’re forced to write the cheques to that are…including you.
Wake up people! When income tax revenue fails to raise the required amount these governments will start to tax capital. The NDP were doing that in BC before that evil premier Gordon Campbell took over. It didn’t make any difference if that capital was generating income or not. Called the ‘Capital Wealth Tax’ or something to that effect.
This will degenerate until they are fighting over the last bone near the camp fire.
North of 60: ‘That’s good common sense and in most worker safety regulations.
Who would have a problem with that?’
No 1 the meter maids pack the hard hats under their arms, most of the time.
No 2 We all cross streets every day, most of us don’t wear hard hats. Would your nanny state require all citizens to wear hard hats outdoors? Why do I ask – nothing surprises me anymore – citizens handing over their independence (from their guments) for boneheaded ‘safety’ prisons.
You are not, obviously, a student of history.
February 2008 is when I saw the writing on the wall and went “Galt,” and decided not to work for the looters and moochers anymore. I’ve been living off of a lifetime of savings and accumulated assets, and my only contribution to the redistributionist pot is lightly taxed capital gains and interest, which is a tiny fraction of what I was paying when I was a producer. I may, if circumstances turn more favorable, dip my toes in the water come 2013, but don’t count on it.
Bemused
Read it again. I’m being sarcastic. Politicians think of themselves that way but in reality they are pampered pets with privilages the normal person will never see. They even get pensions that are illegal to the rest of us slobs.
They are servents to their wallets, not the Nation.
The rest of the workers under them can go to Hell as far as this group is concerened.
To the socialists the military is a foe not an asset. Less money for the Dippers.