This probably amounts to the 600th post I’ve read in the last two decades — from Steve Hayward — about how “unfair” it is that the wealthy pay so much in income taxes.
Of course, this is a crock of shit. He always talks absolute dollars paid, rather than percentages, or even what those percentages might mean in terms of what the truly rich might notice in disposable income.
Not once in those 600 or so posts, did Steve Hayward ever indicate what percentage of the disposable income of the top two or higher percent of American taxpayers actually pay.
On the other hand, he obscures the fact that the lowest one-third (by disposable income) of Americans pay out something like 48% of their overall available income in various taxes. [Think here of gas taxes, food taxes, sales tax generally, state income taxes, and even tollway payments.]
For the very wealthy, no matter how much tax they pay, they will never notice it in their day-to-day living. This is true because they pay under 10% and typically under 3%, for longer term capital appreciated assets as they sell them, through the various carried interest rules.
That is to say, that while they may pay up to a nominal 39% (in corporate income taxes, or dividend taxes) — with capable tax planning, services which they can clearly afford — by far, most of the truly wealthy’s disposable income comes from capital gains rate taxed assets. So their “fair share“ amounts to well under 5% of the liquidity they tap each year.
That is what most people mean when they say the ultra wealthy, don’t pay their fair share, but ride on the backs of the lower one third… Who end up paying close to half of their disposable income out each year in obligatory taxes of one kind or another.
Of course Steve knows all of this, but he’s just a churlish cad, or if you prefer — a malevolent a-hole.
Done.
Powerline Lies... 
I think this reader comment under Hayward’s post speaks volumes about the conservative mentality:
[blinking, shaking my head] That’s, that’s not how taxes work. That’s not what taxes are for. You don’t pay taxes exclusively for your own personal government services. Why would you even think that? That makes no sense.
Taxes are for the benefit of society, not oneself. I have no kids in school, but my taxes still go to public education. My house didn’t catch fire last year, but my taxes still paid for firefighters.
Still, by contributing to a society, I do personally benefit. If a nearby house catches fire and nobody’s around to fight it, it could easily spread to my house. If there’s no funds available to teach kids, they might grow up and uncritically believe deeply dishonest blog posts written by someone who knows full well he’s being deeply dishonest.
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Your take is both spot on, and far more eloquent than mine.
Thank you!
I think I told you that long ago, the Powerline boys blocked my IP from making comments — and about five years ago… from even reading the comments.
I could care less.
But anytime you want to reprint or respond to any comment or post you see there — I’ll handle defending all intellectual property claims of any kind, pro bono that they might aim at you.
These are matters of substantial public concern, literally every time they write…
Thank you, again!
Onward.
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