Thursday, February 21, 2008

Tax rates

Dear Jenn,

I know we've discussed income tax before, but this document is interesting:

Salient facts:

1.) The top 1% of Americans generate 40% of the income tax revenue, and the top 5% pays 60%. That makes it hard to complain about tax cuts for "the wealthy," since they're paying the lion's share of the taxes in the first place. Lower- and middle-class individuals pay more taxes than this chart would indicate, in the form of payroll taxes for social security, etc., but the Department of Agriculture, the military, and the Department of Energy are all paid for mostly by the wealthy.

2.) The top 1%'s share of gross income (as opposed to taxes paid) went from 14% to 21% between 1992 and 2000, and was still (or back up to) 21% in 2005, when this document was produced. Income is distributed more unequally in the Internet age. Hmmm. It looks to me as if elite skills are becoming more valuable, and of course the job market is undoubtedly getting more competitive at the same time. Of course I could be wrong. But get a good education and work hard at self-improvement.

Of course you already knew all that. I hope your work is progressing apace, and look forward to seeing you again.


"The presentation or 'gift' of the Holy Ghost simply confers upon a man the right to receive at any time, when he is worthy of it and desires it, the power and light of truth of the Holy Ghost, although he may often be left to his own spirit and judgment." --Joseph F.
Smith (manual, p. 69)

Be pretty if you are,
Be witty if you can,
But be cheerful if it kills you.

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