Why the Rich don't pay taxes

Dr. Dick shows why the political battle over "taxing the rich" is all a smokescreen and why the truly rich pay little or no taxes. To find out more, go to http://www.drdickpritchard.com/wealth/rich-pay-income-taxes-usa/

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• Why
• the
• Rich
• don't
• pay
• taxes

[rhpritchard1945]

I won't argue that high income earners (whether wages & salary or business & investment income) could pay more taxes. What most of the "tax the rich" advocates miss is, this will not solve the US national debt problem. We MAY have a tax structure problem (at least I think we do), but we have a much bigger SPENDING problem. I favor either restructuring the tax code entirely or going back to the Clinton tax rates PLUS major overhauls of entitlement programs and reductions in military spending.

[Robbob9933]

@rhpritchard1945 The whole class warfare issue was launched to be a complete distraction. The issue has NEVER been about taxation. The ISSUE and ONLY ISSUE is spending. THERE is not enough money in income and wealth in the hands of the 'rich' to balance spending for one year. Watch "Eat the Rich" here on YouTube.

[rhpritchard1945]

@Robbob9933 I agree. My original video was simply pointed out the advantages given to those who employ the other 3 methods of earning cash flow. The rich mostly pay MORE than their "fair share". Look at Mitt Romney's recently released 2010 taxes: $3.2M paid, or about 15% of his income. Average Americans pay about 7%. On the other hand, Warren Buffet, who has been made the "tax the rich" poster child, actually owes almost a billion dollars in back taxes. Who is the better example?

[Robbob9933]

@rhpritchard1945 If I remember the GAO and CBO reports on IRS figures correctly, someone with a 15% effective tax rate pays more taxes than 97% of taxpayers. I forgot that fact of your's. Is it Warren who owes that money of Birkshire?

[rhpritchard1945]

@Robbob9933 Don't know whether it's Buffet himself or Hathaway. In either case, he's a bad example for fair taxation of the rich.

[Welsh77]

the top 20% paid 69.3% of all federal revenue in 2006. the top 1% faced a 31% effective tax rate in 2006 and the bottom 20% paid a 4% effective tax rate according to the CBO. saying that the rich don't pay taxes or that we don't have a progressive system is simply a lie.

[rhpritchard1945]

@Welsh77 You missed the point. Tax RATES are plenty high on high income WAGE EARNERS. I was simply pointing out the tax advantages of the B&I sectors of the Cash Flow Quadrant (as opposed to the E&S sectors, where most people live).

[Robbob9933]

@Welsh77 He is talking about INCOME TAXES you ass. That is the only tax that is in the arguement.

[zunathanzu]

tax the rich, feed the poor! 

[disclaimer05]

The 45% of income earners you mentioned do not pay federal income taxes because they do not earn enough. They do pay payroll and state taxes. While some receive a federal income tax return, it is not from payroll taxes. There is no question that the wealthiest Americans pay a majority of the income taxes, but considering the fact their income has increased dramatically and that income taxes are the lowest they've been in decades, they could pay more to provide for schools or government jobs.

[Welsh77]

@rhpritchard1945 i really don't care, when you have a system that slanted, much more slanted than the income distribution, the rich are paying more than enough in taxes.

[Immer4Rammstein]

@rhpritchard1945 I see your point. So what do you think the US can do to fix the huge deficit that America has?