As our Federal, State and Local governments flounder about trying to figure out what went wrong with their budgets, none will come to the conclusion that they spent too much. Their solution to the current crisis is to spend more. Brilliant. A light bulb will go off above their pointy pea-brained heads telling them that they can increase revenue by raising taxes. Brilliant. Below is my hypothetical upper middle class tax burden scenario:
Family of 4, owning a home in the suburbs with combined family income of $100,000, working in Phila.
Annual Income $100,000
Federal Income Tax ($15,000)
Social Security & Medicare Tax ($ 7,650)
PA State Tax ($ 3,100)
Phila Wage Tax ($3,500)
Real Estate & School Tax ($4,500)
PA Sales tax on purchases ($3,000)
Fuel Excise taxes (Fed & State) ($ 800)
Phone & Utility taxes & fees ($ 500)
Township fees & surcharges ($250)
Pass through of corp inc. taxes in prices ($1,000)
TOTAL TAXES ($39,300) Effective tax rate 39.3%
The ultra-rich have tax attorneys who will set up trusts, foundations and find every loophole in the 50,000 page tax law to eliminate or minimize their tax burden. This is why Buffett and Gates support higher taxes.
The "poor" who pay no income taxes think taxes should be raised so their welfare checks keep coming.
Who gets screwed? You and me. The hard working families in the middle class of America will bear the burden of the ultra rich getting richer and poor continuing to suck off the teet of the welfare state.