The rich are already paying far more than their so-called fair share. They will figure it out. The middle class will be screwed.
Is this true? I mean, it is often quoted by both sides (whether they are or are not paying their "fair" share, whatever that means), but what are the facts? Let's say the wealthiest quintile earns 80% of the income (both salary and investment income because I don't really see those two sources of income as fundamentally different), how much in taxes are they paying each year? If the top 20% makes 80% of the income, and they pay 70% of the taxes then it would be pretty easy to argue that they are, in fact, not paying their "fair" share. If the opposite is true, then we perhaps would be in agreement.
**EDIT: Just found this link (
http://www.cbo.gov/publication/49440). Turns out the wealthiest Americans do, in fact, pay more in federal tax than they earn (as a percentage). I'm reading deeper to see what they consider "income."
Then the second question is, what is considered "fair"? Do we as a country believe that each person should contribute the same amount, based on income? Or do we believe that the wealthiest should contribute more, due to a reason or variety of reasons?
The biggest issue I see with our tax system is all of the credits that are received by various groups. We give huge tax breaks and incentives to people and often times those incentives are often going to people with higher incomes. For example, we give a tax incentive for mortgage interest. Who are the people with the largest mortgages? It certainly isn't the folks in the bottom quintile. As another example, the US government provides significant financial incentives for higher education (loans, state universities, etc.). Again the people taking advantage of these programs are disproportionately the wealthier Americans. I don't know whether the top earners pay their fare share. I don't even know what I really pay in taxes each year due to the crazy number of taxes and incentives that I pay/receive. Until that smoke and mirrors disappears, it is tough to have a conversation about "fair" share.