California, Here We Come!

Does not include 2010 and 2011: It got worse.

Here is why the Democrats have a big advantage nowadays: 51% of Americans pay no federal income tax. Actually it is worse than that according to an article in the non-conservative Atlantic Monthly:

Half of American tax payers owe no federal income tax, and most of those filers actually net tax benefits from federal income taxes, according to analysis from the Joint Committee on Taxation…

Yes, they do pay taxes, just not the taxes that pay for the military, roads and bridges, and Department of Education bureaucrats:

The majority of households who pay no income tax still pay net taxes to the IRS. Federal income taxes account for about 40 percent of total government receipts. Most of the rest comes from payroll taxes, which workers of all income levels do pay. Since every dollar up to $106,800 is subject to taxes, a typical middle class family pays payroll taxes on all its income while a millionaire employee pays payroll taxes on only a tenth of his income.

Fine, but payroll taxes pay for Social Security and Medicare, not bridges and roads and bureaucrats. And the average person gets back from Medicare and Social Security much more than he or she puts in. But as I said, it gets worse.

From the Wall Street Journal:

… As the Tax Foundation explains in a recent report based on CBO data: “The top 20 percent of households pay 94 percent of federal income taxes. The bottom 40 percent have a negative income tax rate, and the middle quintile pays close to zero.”…

The American colonists declared their independence from Britain because they were being taxed without representation. What is worse and more dangerous is where we are now: Representation without Taxation. That means that it is in the interest of a large majority of Americans to vote for politicians who will raise taxes on the minority.

So, it is that 50 to 60 percent of non-tax and negative tax payers Obama is appealing to. Perhaps the appeal will work in November, but as Mrs. Thatcher said, you eventually run out of other people’s money.

It will be interesting to see what happens when, as is likely, California comes begging in the near future for a bailout. Will all those former Californians who fled to Texas and other low tax states willingly agree to keep their former friends and neighbors in the style to which they have irresponsibly become accustomed?

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