COSTS FOR SERVICES
Government spends money, taxes people to cover the costs for their services to the public (including companies).
COSTS FOR OUR OWN BENEFITS
People who earn from working pay for their own investment in their own Social Security, Medicare, Unemployment insurance, Disability insurance - all things for themselves.
WHO PAYS FOR WHAT?
They are two separate and distinct "boxes":
1. Pay in for your own benefits
2. Pay for your share of government services
For benefits For Government
(Soc. Sec,, Medicare Expenses
Bottom 47% Payroll taxes No taxes, get back some income
Top 53% Payroll taxes Pay all the taxes for everyone
I heard a politician say that the poor have to pay too much in taxes. They are paying for benefits that come back directly to them later in life, in the form of what is called "payroll taxes", but that is not income taxes.
The politicians do not mention that the bottom 47% pay no income taxes at all and a number of them get paid by the government to supplement their income.
We have reached the midpoint between self responsibility and socialism. Now the question is which way to go for the benefit of the people. We are at a crossroads.
Portion of total taxes Portion of total income
Top 1% 38% 19%
Top 10% 68% 44%
Top 25% 85% 66%
Next 25% 15%
So, what is "fair"? And what is "I just need more." And what is actually the cause for Inequality And Poverty?