What is the “fair share” of taxes that the rich should pay? For that matter who are “the rich”?
I’ll answer the second question. Those who earn incomes three standard deviations (the top 1%) from the median income are well-to-do. Basically, somebody who earns $400K/year isn’t rich—I would say “well-to-do”. Those who earn incomes four standard deviations (the top .01%) from the median income are rich. That varies considerably from state to state but it’s no less than $4 million per year.
I don’t have an answer for the first question. I don’t think “so we have enough money to do whatever we want” or “so that incomes are more equal” are good enough answers.
Tax the rich?
I’m beginning to think that we should offer them a menu.
. How much would you like to pay?
.How much would you pay before you decided to offshore?
.How much would you pay for tax attorney’s? More, or less than taxes?
.Or simply put a request at the bottom like blogs do, if you like what we’re doing, infrastructure, law enforcement, and protecting the the sea lanes, consider contributing.
I like your suggestion, Gray, in offering a multiple choice menu on where taxpayers want their tax dollars to be spent. It’s similar to a rural theater we give money to when asking for donations. They have about 8 designated needs where donated monies can be placed – new seats, stage curtain etc. We usually check the box for mortgage reduction, which would help reduce their monthly overhead.
Expanding: The truly rich pay only what they are willing to. They cannot be coerced, cajoled, shamed, threatened, they will only pay what is less costly than than the cost of avoiding the tax. They have a fiduciary responsibility to do just that. Those at the lower end think just the same. If I can work off the cuff, why not? The “fair tax” is the fair way to go, but with that, congress can’t use the tax code for social engineering, so we’re stuck with what we have.