We need a new Democratic Party

[bhikkhu]

64. Here's the background on the source for that graphic:

http://ctj.org/about/background.php

"Citizens for Tax Justice, founded in 1979, is a 501 (c)(4) public interest research and advocacy organization focusing on federal, state and local tax policies and their impact upon our nation. CTJ's mission is to give ordinary people a greater voice in the development of tax laws. Against the armies of special interest lobbyists for corporations and the wealthy, CTJ fights for:

Fair taxes for middle and low-income families
Requiring the wealthy to pay their fair share
Closing corporate tax loopholes
Adequately funding important government services
Reducing the federal debt
Taxation that minimizes distortion of economic markets"

and so forth. I know the first reaction to discrepant information is to attack the source, rather than research the source, and to dismiss the information, rather than fact-check it or make sure you understand it.

"Total taxes" is the key term. The right tends to look only at federal taxes when they form their talking points, as the federal tax rates are the most progressive and show the poor paying nothing and the wealthiest paying ridiculous amounts in comparison. This is a distortion.

"Total taxes" includes sales tax, which consumes a disproportionate amount of poorer individual's income, as do the fuel and energy taxes, and vehicle registration fees and so forth. When you look at the proportions of a person's income paid in total taxes, those who pay no federal income tax still pay about 20% of their income in taxes.

When you get to the middle classes you add more federal income tax along with property taxes and higher state taxes. When you reach the top of the ladder sales tax and others becomes insignificant, but capital gains and property taxes can take up a higher proportion (depending on how the wealth is arranged). If you still just look at federal tax, some people avoid that cleverly, but on the whole they pay about 30% of income in total taxes.

The figures are just the facts, and the group that put them together is slanted in our direction, if its slanted at all. On the one hand, it disproves the RW slander against the poor - they pay their share. On the other hand, it shows that the wealthiest also pay taxes generally at about the same rate as most people. Individuals (such as Romney) may have their special loopholes and tricks, but the general rate is still there.

What I take away is that the whole thing looks pretty equitable and fair overall. The poor should pay a little less, the rich should pay a little more. And if we had some crisis where we had to drum up another percentage or two, obviously it should come from those who can afford it easily. Closing loopholes and tax breaks on the uber-rich is the obvious best approach.