Peculiar statistical calculations

Here are some interesting statistics from the data found at http://www.irs.gov/pub/irs-soi/04in34tr.xls

0.82% of the population earn an average of $1,134,091.34 and pay 30.03% of the federally collected taxes.
1.33% of the population earn an average of $ 297,026.42 and pay 10.29% of the federally collected taxes.
1.85% of the population earn an average of $ 179,246.68 and pay 7.04% of the federally collected taxes.
0.02% of the population earn an average of $ 154,667.25 and pay 0.05% of the federally collected taxes.
1.64% of the population earn an average of $ 142,875.26 and pay 4.97% of the federally collected taxes.
6.28% of the population earn an average of $ 105,542.01 and pay 10.53% of the federally collected taxes.
7.68% of the population earn an average of $ 77,927.52 and pay 6.29% of the federally collected taxes.
15.16% of the population earn an average of $ 77,661.69 and pay 17.47% of the federally collected taxes.
39.51% of the population earn an average of $ 41,299.26 and pay 12.47% of the federally collected taxes.
2.60% of the population earn an average of $ 24,363.95 and pay 0.17% of the federally collected taxes.
1.02% of the population earn an average of $ 22,324.30 and pay 0.04% of the federally collected taxes.
21.95% of the population earn an average of $ 18,435.92 and pay 0.62% of the federally collected taxes.
0.11% of the population earn an average of $ 13,970.83 and pay 0.04% of the federally collected taxes.
0.00% of the population earn an average of $ 7,137.90 and pay 0.00% of the federally collected taxes.
0.01% of the population earn an average of $ (24,573.61) and pay 0.00% of the federally collected taxes.

The problem with the above data is that it doesn’t show the percentage of tax as a percentage of income so here’s that:

0.82% of the population earn 14.41% of the income and pay 30.03% of the taxes.
1.33% of the population earn 6.11% of the income and pay 10.29% of the taxes.
1.85% of the population earn 5.14% of the income and pay 7.04% of the taxes.
0.02% of the population earn 0.06% of the income and pay 0.05% of the taxes.
1.64% of the population earn 3.62% of the income and pay 4.97% of the taxes.
6.28% of the population earn 10.27% of the income and pay 10.53% of the taxes.
7.68% of the population earn 9.27% of the income and pay 6.29% of the taxes.
15.16% of the population earn 18.23% of the income and pay 17.47% of the taxes.
39.51% of the population earn 25.27% of the income and pay 12.47% of the taxes.
2.60% of the population earn 0.98% of the income and pay 0.17% of the taxes.
1.02% of the population earn 0.35% of the income and pay 0.04% of the taxes.
21.95% of the population earn 6.27% of the income and pay 0.62% of the taxes.
0.11% of the population earn 0.02% of the income and pay 0.04% of the taxes.
0.00% of the population earn 0.00% of the income and pay 0.00% of the taxes.
0.00% of the population earn 0.00% of the income and pay 0.00% of the taxes.

Now, I’m no republican, I’m a libertarian, i.e., “The government can kiss my furry white ass.” attitude. However, I’m not
one of those crazy anarchist types who think any form of government sucks. I’m definitely not a liberal, i.e. I don’t
believe that it’s the government’s responsibility to take care of anyone or anything aside from the government. I’m just
the kind that wishes the government would leave me to my own devise and only take care of things that I can’t take care
of for myself, e.g., wars, national epidemics, etc. Government welfare and Social Security are a big waste of money,
both mine and yours, because the system doesn’t help those within it get out, but it encourages them to stay in. Think,
if you could get what you need with a welfare check would you lift a finger to get out of that?

So logically, a “fair tax” would be one that taxes everyone equally. That is, the 14.41% of the income earns pay 14.41%
of the taxes and the 0.02% of the income earners pay 0.02% of the taxes, etc. So, from the above data it is clear that
87.96% of the population is undertaxed while 12.04% is overtaxed. 19.63% of the population earn 48.88% of the income
and pay 69.20% of the taxes; the fair thing would be for them to pay 48.88% of the taxes. The current tax structure is
set up such that highest earning group of people pay the least taxes. This is where many get confused. The highest earning
group is defined as the group that earns the highest percentage of total income, meaning that 39.51% of the population
who earn an average of $41,229.26, earning 25.27% of the nation’s gross income pay the lowest taxes (as a percentage of
their income) of only 12.47%. The highest earning income group is not the 0.82% of the nation who happen to be millionaires
but rather it’s the middle-class.

The flaw behind a consumption tax is that despite what proponents of the idea say, the fact is that those in the top 0.82%
spend less on needs and wants as a percentage of their total income opposed to the bottom 0.00%. Let’s say that the top
0.82% spend 50% of their total income, an average of $567,045.67, whereas those in the bottom 0.00% spend 100% of their
total income an average of $7,137.90. I’ll use the example of the fair-tax proposal that’s been floating around, 30%
of purchases is tax. Thus, the top 0.82% pay $170,113.70 while the bottom 0.00% pay $2,141.37 but with the proposed
prebate they would get back $2,254 (presuming one individual, more back if more people) resulting in a net tax of 0.00%.
But that is a bad example, let’s use a middle class family of two adults and two children, who also spend 100% of their
total income for an average of $41,229.26, paying $12,389.78 in taxes. They get back $6,072 from the prebate. Resulting
in a net tax of $6,317.78. Now, let’s look at those taxes as a percentage of income. The top 0.82% pay 15% of their total
income in taxes while 39.51% of the population pay 15.98% of their total income in taxes. The point is, even this system
is still not fair. However, a consumption tax would capture all of the illegally generated income that is currently not
taxed, since those breaking the law are still making money, there is a high probability that they are spending it.
Drug money, gun money, and payment to illegal immigrant workers (they don’t pay income tax since their boss won’t risk
the chance of getting caught) are examples of this illegal jazz. They still have to buy stuff…right?
While the concept of a “fair tax” is an oxymoron, the only reasonably progressive tax is the flat tax. Where each
pays a percentage of their income. Yes, those in the bottom 0.00% pay significantly more than they have previously. Those
who should have been paying more taxes are paying more, while those who should be paying less are paying less.

While I don’t agree that those who earn more should pay more I don’t deny that they can afford it. What bugs me though is
the idea that the bottom 0.00% earn only $3.43 per hour when the federal minimum wage is $5.15 which leads me to believe
that the bottom 0.00% are dependents of someone within another “tax bracket” or that they are extremely lazy and/or
unambitious. Hell in a red-neck town in west Tennessee, I could have gotten a job flipping burgers for $6.40 an hour.
Granted that many arguments will be that those in the bottom cannot get a break to get that $6.40 per hour job. I say,
“That is just a bunch of crap.” However, despite my desire for a “fair tax” the only thing that comes close is the consumption
tax mentioned above, if only because it still re-distributes wealth (pleasing those liberal floozies…mildly),
it encompasses all that illegal activity (makes more money for the government), and makes it a voluntary tax since I control
my spending and thereby my tax payment (makes me happy).