The Total Income of all Americans Making $10 Million Annually? Can the Rich Cover Our Deficit? Can We Double All Taxes and Balance the Budget?

Can we raise taxes on the rich and tax our way out of our Trillions of dollars of debt? Can those making $1 Million or more annually cover our deficit? Can we double the taxes on every taxpayer and balance our budget?

Tax the Fat Cats

Rush Limbaugh:

A report from the Internal Revenue Service found that the rich –” and the rich are defined this way:  8,274 people with incomes of $10 million per year or more.  What do you think those 8,274 people earned combined in 2009?  Snerdley, take a wild guess.  All of you out there, take a wild guess in your mind. I’m not asking you to call and I’m gonna tell you what the number is here in just a second.  But just think about this, 8,274 people with incomes of $10 million per year or more.

Now, you got Buffett in there and Gates at their $40 to 50 billion, but that’s their net worth.  What do they earn?  It’s a different number.  But you take all of those people, just give me a number, what do you think, 8,274 people with incomes of $10 million per year or more, what was the combined total income earned of all those 8,274 people in 2009?

One trillion, $250 billion.  That’s what you say, Brian?  Snerdley says a trillion.  The answer is $240 billion.  Brian, you were $10 billion off.  That’s it.  That’s right.  That’s it.  The 8,274 people with incomes of $10 million per year or more earned a total of $240 billion in 2009.  

“Even of you confiscated every dime they earned, you would barely have enough money to cover government spending for 24 days.” In fact, this $240 billion, I mean that’s pretty close to the actual real number of budget cuts in the debt deal when you strip everything away.  Now, about 25% of that money already goes to the federal government for federal income.  So actually that $240 billion would run the government for 18 days.

“Another 227,000 people earned $1 million or more in 2009.  Millionaires averaged taxes of 24.4% of their income — up from 23.1% in 2008.”  Now, you might be asking, how did that happen?  Well, the Bush tax cuts, folks.  Obama’s tax increases hadn’t started, and Obama’s not immaculated yet.  “They, too, did not earn enough money to come anywhere close to covering the annual deficits that are $1.5 trillion a year.”  So 8,274 people who earn $10 million per year or more, earn a total of $240 billion in 2009.  Another 227,000 people earned a million dollars or more in 2009.  But it doesn’t come anywhere close to covering the deficit of $1.5 trillion. ..

Confiscate every dollar earned by people who make $10 million a year or more and you run the country for barely over two weeks.  That has not changed since I first heard of this statistic 23, 25 years ago.  It hasn’t changed.  As it is, these people are already paying 70% of the total income tax burden!  So there’s no economic growth hidden away here in a tax increase on these people. ..

How in the world does taking money out of the private sector cause it to grow?  Mathematically impossible, folks.

From Reuters: “Total adjusted gross income reported on tax returns, measured in 2009 dollars, was $7.626 trillion, down from $8.233 trillion in 2008 and $8.989 trillion in 2007. Total adjusted gross income was up only slightly from the $7.475 trillion reported in 2001, when there were 10 million fewer taxpayers.”

Individual tax collections equaled 15.4% of all income.  “Doubling federal income taxes for everyone would still leave us $400 billion or so shy of balancing the budget.”  That’s the bottom line.  Doubling federal income taxes for everybody would raise $1.1 trillion, $400 billion shy of the deficit.

Hey folks, pass it around. America need to know.