Monday, July 20
Posted 2 p.m. EDT
According to this history of taxation from the U.S. Department of the Treasury, we've had an aversion to taxes as part of the American culture since the Revolution, when Parliament imposed a surcharge on tea.
Unless, of course, we decide to put the burden solely on the wealthy.
Historically, the tax system has represented our nation's need for revenue and our cultural view of the role of government throughout its various reforms. Certainly, the wealthy have paid a disproportionare share because they are taxed at a higher rate. On the other hand, they have also benefited from former President George W. Bush's tax cuts.
But President Barack Obama's current plan for taxing the rich to correct the ills of society seems like flawed math.
As this article in CNN Money points out, there probably aren't enough rich people to pay for the programs -- especially given the massive health care reform being proposed.
According to the CapGemini and Merrill Lynch World Wealth Report, released in June, there were 2.5 million millionaires in the U.S. in 2008 (defined as those with investable assets of $1 million or more, not including a primary residence.) That's less than 1 percent of the population.
And Obama wants the rich to fund more than just health care reform. The table is laden with other revenue-generating ideas, all expected to be paid for by those earning more than $350,000 per year.
The article quoted Len Burman, director of the Tax Policy Center, who pointed out, "There's an argument for making the tax system more progressive. (But) people are going to have to pay tax or come to terms with smaller government. Right now there's enormous pressure for the government to do more and more."
If, as the article suggests, the federal debt is expected to double from 41 percent of gross domestic product to 82 percent by 2019 under the president's proposed budget, the rich won't be the only ones facing huge taxes.
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