In FY 2010 the wealthiest 1% of Americans earned 19% of the wealth and paid $335.6 billion (37% of federal income tax revenues) in federal income tax. The bottom 50% earned 13% of the wealth and paid $27.2 billion (3% of federal income tax revenues). This is without a doubt an extreme disparity in both income and taxation.
Federal Revenues As Current (In Billions)
$335.6 + $27.2 = 362.8
What if we let the Liberals have their Socialist way and redistributed the wealth somehow? What if we took just under half the wealth from the top 1%, keeping their effective tax rates the same, and gave it the bottom 50%, allowing their effective tax rates to double?
Thus the top 1% would only hold 10% of the wealth and would pay $159 billion to the federal government and the bottom 50% would hold 22% of the wealth and pay $81.4 billion to the federal government.
Federal Revenues Post-Redistribution (In Billions)
$159 + $81.4 = $240.4
The wealth redistribution, even with taxing the wealth-reduced top 1% at the same level and doubling the taxes upon the enriched lower 50%, results in a $122.4 billion reduction in federal income tax revenues which are 42% of the total federal receipts. That’s a 33.7% shortfall.
The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.
— Winston Churchill
But, Gods damn it, it’d just be so much more fair to redistribute that wealth! Isn’t that fairness and equality of outcome more important than mere federal revenues and the entitlement programs they’re spent upon?