Tax The Rich? Oh No!

Why Tax the Rich, you ask?

Taxing the Rich is necessary. For far too long, the financial burden to run the country has been carried almost exclusively by the “financially struggling class”, the working class and the middle class while the rich continue to enjoy life without any worry of having to help carry the heavy burden of financing government expenditures. Loopholes (deliberate financial loopholes) inserted into legislations by Republicans are for the purpose of making it easy for the rich NOT TO have to pay taxes or at the very least to keep as much as they have accumulated.

According to 2017 data released by Internal Revenue Service (IRS), a SINGLE filer earning between “$18,650-$75,900” will pay a base tax of $1,875 + 15% of the excess over $18,650. Translation: if you earn for instance $47,000 a year as a single individual, you would owe the federal government $6,117.50 calculated as followed {$1,865 + [(0.15 x $28,350)=$4,252.50] = $6,117.50}. The $28,350 is the excess over $18,650 ($47,000 – $18,650). It is also worth pointing out the calculation above is for federal taxes only. Your total taxes will depend a great deal on your State of residence. For instance, in NY State, a SINGLE filer earning $47,000 a year would pay $1,042 + 5.97% of the excess over $21,400 bringing the NY taxes to $2,570.32 {$1,042 + [(0.0597 x $25,600)=$1,528.32] = $2,570.32}. So, the grand total of taxes a NY resident who makes $47,000 a year would pay is 8,687.82 (Fed= $6,117.50 + NY=$2,570.32); the take home for that individual is: 38,312.18 ($47,000 – $8,687.82).

By contrast, big companies with billions of dollars in revenues during the same period paid zero tax, zilch, nothing despite having reported record profit; profits mean those companies didn’t just make billions selling products and/or services, they had insane amount of profit after all their expenses were paid for.

According to analysis from the Institute on Taxation and Economic Policy (ITEP), in 2018, 60 Fortune 500 companies paid zero (0) federal income tax. (That number is more than three times the number which avoided paying corporate taxes from 2008 to 2015). Let’s put that in perspective.

In 2017, the effective corporate tax rate was 13.6%. In 2018, corporations paid just 7% of their profits as federal taxes, according to data provided to Yahoo Finance by research firm Oxford Economics.

That’s the lowest effective tax rate since 947. Below are a few examples of what it’s like for GOP Leaders to oppress the constituents for the benefits of corporations

In 2018, Amazon paid $0 in taxes on record profit of $11 billion. Delta Airlines (DAL), Chevron (CVX), Netflix (NFLX), and General Motors (GM), “Instead of paying $16.4 billion in taxes at the 21 percent statutory corporate tax rate, these companies enjoyed a net corporate tax rebate of $4.3 billion.”, meaning they got money back to the tune of $4.3 billion dollars.

Here is the simplest way to visualize a real problem the country has been confronting but GOP Leaders have managed to convince their supporters Democrats are the problem. In 2018,

 Sales = $232 Billion
Income = $47,000Profit = $11 Billion
Taxes = $6,117Taxes = $0

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