If you are one of the fortunate families to be in say the top 1 / 2 of 1% of earnings and your income is basically ‘ordinary’ as opposed to ‘capital gains’, you now are paying close to 50% of most of your income in federal, state and possibly local taxes. If you lived in New York City, as opposed to Lancaster, you might be closer to 60%.
We advocated high taxes on the wealthy and have no objection to them. However, many people have long ‘taxed’ themselves through donating large portions of their income to charitable organizations and other good causes. Suddenly, they find themselves in a bit of a bind and with the need to perhaps cut back.
Americans our exceptional in donating to charity. This is not the practice in many parts of the world.
The higher taxes will not altogether be a plus for society. The government will be spending some of the money that otherwise might have been better spent through non-governmental organizations (NGO’s).
The lesson as we state above: Be care for what you wish.
You may be a little too kind to the taxing authorities by basing you comment on the very top. I contend the typical citizen pays somewhere near 60%. Of course individuals eventually pay all taxes as business taxes are built into the price of the product.
A partial list of the various ways in which citizens of the US are taxed:
•Accounts Receivable Tax
•Building Permit Tax
•Capital Gains Tax
•CDL license Tax
•Cigarette Tax
•Corporate Income Tax
•Court Fines (indirect taxes)
•Deficit spending
•Dog License Tax
•Federal Income Tax
•Federal Unemployment Tax (FUTA)
•Fishing License Tax
•Food License Tax
•Fuel permit tax
•Gasoline Tax
•Hunting License Tax
•Inflation
•Inheritance Tax Interest expense (tax on the money)
•Inventory tax IRS Interest Charges (tax on top of tax)
•IRS Penalties (tax on top of tax)
•Liquor Tax
•Local Income Tax
•Luxury Taxes
•Marriage License Tax
•Medicare Tax
•Property Tax
•Real Estate Tax
•Septic Permit Tax
•Service Charge Taxes
•Social Security Tax
•Road Usage Taxes (Truckers)
•Sales Taxes
•Recreational Vehicle Tax
•Road Toll Booth Taxes
•School Tax
•State Income Tax
•State Unemployment Tax (SUTA)
•Telephone federal excise tax
•Telephone federal universal service fee tax
•Telephone federal, state and local surcharge taxes
•Telephone minimum usage surcharge tax
•Telephone recurring and non-recurring charges tax
•Telephone state and local tax
•Telephone usage charge tax
•Toll Bridge Taxes
•Toll Tunnel Taxes
•Traffic Fines (indirect taxation)
•Trailer Registration Tax
•Utility Taxes
•Vehicle License Registration Tax
•Vehicle Sales Tax
•Watercraft Registration Tax
•Well Permit Tax
•Workers Compensation Tax