This may seem crazy to many people, including fellow conservatives, but for Justice to prevail this has to come to pass. In reality, the poor are the ones that benefit most from the so called social programs and subsidies and get the most out of deductions and loop holes. The rich are given nothing special. This again may strike most people as being an outrageous statement, but it is the truth. Charitable deductions, mortgage interest deduction, lower tax rates for capital gains and special tax treatment for limited partnership interests and master limited partnership interests are all available to the poor, if they make charitable donations, pay a mortgage and make investments. However, in addition, the poor get other benefits like earned income tax credits, student loan deductions, food stamps, medicaid, among others. It is clear that they use more resources and pay the least amount of taxes. Here are the numbers: The top 10% earn about 43% of the country’s income, but pay for over 70% of the taxes at over an 18% rate even with the so called loopholes and benefits for the rich. This compares to the bottom 50% that make close to 14% of the income, but pay only 2% of the taxes at a 2% rate. In contrast the social budget constitutes some $860MM in Medicaid/Medicare, $775MM in social security, $475MM in welfare spending, and $180MM in other. For the sake of argument, I will assume that half of the $860MM in Medicaid/Medicare is used for Medicaid and that $180MM of other is for the poor. This means that social spending accessible to the poor is about $1.085 trillion. Further, if we make the assumption that the military budget, infrastructure and the education budget are equally beneficial to the poor as it is to the rich (it isn’t, it’s more beneficial to the poor) then the bottom 50% have access to some $1.8 trillion of the federal budget, which is no less than half of the federal budget. Yet as stated above they only pay for about 2% of the taxes. In what world and under what rationale is this fair and Just?!
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