This year’s Index of Dependence on Government presented startling findings about the sharp increase of Americans who rely on the federal government for housing, food, income, student aid or other assistance. (See last week’s chart.)
Another eye-popping number was the percentage of Americans who don’t pay income taxes, which now accounts for nearly half of the U.S. population. Meanwhile, most of that population receives generous federal benefits.
“One of the most worrying trends in the Index is the coinciding growth in the non-taxpaying public,” wrote Heritage authors Bill Beach and Patrick Tyrrell. “The percentage of people who do not pay federal income taxes, and who are not claimed as dependents by someone who does pay them, jumped from 14.8 percent in 1984 to 49.5 percent in 2009.”
I guess to make up for this gaping hole, the president’s budget will triple the tax rate on corporate dividends.
Mr. Obama is proposing to raise the dividend tax rate to the higher personal income tax rate of 39.6% that will kick in next year. Add in the planned phase-out of deductions and exemptions, and the rate hits 41%. Then add the 3.8% investment tax surcharge in ObamaCare, and the new dividend tax rate in 2013 would be 44.8%—nearly three times today’s 15% rate.
Keep in mind that dividends are paid to shareholders only after the corporation pays taxes on its profits. So assuming a maximum 35% corporate tax rate and a 44.8% dividend tax, the total tax on corporate earnings passed through as dividends would be 64.1%.
It`s been this way for awhile, no one was really talking about it because the economy was steaming along, the numbers have been rising exponentially due to increased illegal immigration, as well as generational cradle to grave welfare in the mostly Democrat controlled major cities. When A family consists of a mother and three children that are totally dependent on the government for everything from birth to death, then the three children reproduce, and so on, they do not know, or acknowledge any other way of life. Look at it this way, any parent that bought their kids two hamsters and got a male and a female and simply let it go, will soon be feeding and medicating a houseful of hamsters, the hamsters don`t know anything different, nor do they care – as long as they are fed and cared for. There is another segment of Americans that have looked around, see more and more things like this- http://freebeacon.com/sapphire-in-the-rough/ and this- http://biggovernment.com/whall/2012/02/21/dnc-co-chairmans-company-landed-230-4m-in-obama-stimulus-money/#more-433432 and have simply decided that they are chumps for busting their ass working to watch an increasing number of in your face thievery going on that they have no say in. The Presidents plans would seem to be chugging right along.
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