American Shareholders Association

Think You're Not in the Top 10%? Think Again.

The IRS today released its updated figures on income earners in America.  The most interesting part of this is to see (especially for those of us in cities) how little one has to earn to be in the top half of income earners, or even the top 10%.

A Few Highlights

• total income taxes divided by total adjusted gross income (AGI) totaled 13.6% in 2005, up 0.4% from 2004
• the top 1% of income earners (those earning AGI of $365,000 or higher) paid nearly 40% of all income taxes
• the top 5% of income earners (those earning AGI of $145,000 or higher) paid nearly 60% of all income taxes
• the top 10% of income earners (those earning AGI of $104,000 or higher) paid 70% of all income taxes
• the bottom half of income earners (those earning AGI of $31,000 or less), paid only 3% of all income taxes

Get the picture?  Those who want to make our tax code more progressive need to be asked, "just how much do you want to make working people pay?"

U.S. Economy Sluggish, But Not in Recession

The Commerce Department released their latest estimates of GDP growth in the fourth quarter of 2007.  While it was a very sluggish 0.6% real growth rate, that's hardly recessionary. 

We may look back on this as the dog that didn't bark.

Follow Up on Liechtenstein Tax Haven Issue

Apparently, there was a lot of traffic on the web concerning this Liechtenstein tax haven question we posted on yesterday.  Most of it's predictable, but apparently the IRS has their hands out, too.

DeMint Seeks Earmark Mortatorium

Senator Jim DeMint has announced that he will force a vote on an earmark moratorium as part of the Senate's budget resolution debate.

Medicare to Eat Up $1 Out of Every $5 Tax Dollars

Depressing news out of CMS today (the agency that administers Medicare): by 2020, $1 out of $5 federal tax dollars will be going to the old-age socialized medicine program.

Congressman Jeb Hensarling (R-TX) has a good op-ed on what needs to be done to protect taxpayers against this growing threat.

SEIU To Bash Investment Partnerships

According to industry reports obtained by ASA, the SEIU is getting ready to fire both barrels at the investment partnership industry.

To refresh memories on the issue, qualified dividends and capital gains are taxed at 15% for individuals.  Managers of investment partnerships often get compensated in dividends and capital gains.  Liberals in Congress want these dividends and capital gains (that is, only those received by partnership managers) to be taxed at rates of 35% or higher.  It's class warfare, pure and simple.

Needless to say, these partnerships will have less profit to pass along to universities, charities, and other non-managing partners.  Nice idea, Congress.

What's ironic is that union pension plans often derive a good chunk of their income from these investment partnerships.  The SEIU is slitting its own throat.

Laffer Curve 101, Part II

German Tax Collectors Blitz Liechtenstein

When high-tax countries like Germany try to bully around "tax havens," they're normally talking about free market Carribbean nations.  Now, though, German tax collectors are going after one of the oldest countries in Europe--Liechtenstein.

Quite frankly, Germany has a lot of nerve.  It's their sky-high tax rates that are causing its taxpayers to move 4 billion Euro to the DC-sized country.  If they want to retain the capital, Germany should cut their own tax rates.  What's next?  Ireland?  Eastern Europe?