Today, I would like to rant a little bit about wealthy people. I saw a tweet from President Biden that said, “You know the average tax billionaires pay? THREE PERCENT. No billionaire should be paying a lower tax than somebody working as a schoolteacher or a firefighter.”
Mind you, this tweet is inaccurate, to say the least, but that didn’t stop it from being retweeted 7,210 times with 54K ignorant “likes” at the moment this blog was written. The 3% number Biden is referring to is based on a value increase of held investments (not on their income). However, these investments can also lose value which is why they are taxed when sold and become income. Calculating that, the average tax rate for them is 25%, not 3.
Biden said the “average federal income tax” paid by the richest Americans is “8%. … If you’re a cop, a teacher, a firefighter, union worker, you probably pay two to three times that.”
Today, the richest Americans pay an effective tax rate of more than 20% of their income as counted under the current tax code, not 8%.
Meanwhile, among households earning between $50,000 and $100,000 a year, the vast majority paid effective tax rates of between 0 and 15%, which is not two to three times the rate that the richest pay.
I paid 53% taxes on my Tesla stock options (40% Federal & 13% state), so I must be lifting the average!
— Elon Musk (@elonmusk) March 18, 2023
I also paid more income tax than anyone ever in the history of Earth for 2021 and will do that again in 2022.@CommunityNotes, is the 3% number cited above accurate?
I have never met a billionaire; however, I do happen to know quite a few millionaires. I am just your average middle-class citizen but let me tell you about some of the millionaires I do know.
Let’s talk about Deb. Not only did I work for her, but I worked side by side with her. She and her husband made money from the service side of oil and various business endeavors. They had many companies and I happen to work for one of them. I was paid well and was treated even better. Within the first few months of working for this company, I was in awe of how humble this woman was. She went out of her way to do things for me and for everyone she met.
For me, it started with filling my freezer full of beef. I never asked for a thing, but she would show up with boxes of beef and would claim she needed room in her freezer. I tried to turn her down but it was clear gifting brought her joy.
The first Christmas I had with the company she knew I was stressed about hosting an abnormally large family Christmas at my house. About a month before Christmas, she gave me instructions out of the blue on how to get to her cabin that was in the mountains not too far which was a dream for hosting! I was absolutely stunned. She wanted me and my family to spend Christmas at her cabin! I tried to decline but she insisted. I felt so blessed, thanked her, and guess what, the next Christmas she insisted that we stay at her lake house that was just as equipped as the cabin. I felt so special.
I knew she did these kinds of things for everyone. I know people that she housed just because they needed help. She paid their bills and got them medical help, and counseling. She would grocery shop for families that she knew were going without. If somebody was displaced from their home for whatever reason, she was there to help. She was gifted with monetary things, and she helped with things just to be kind. She paid for people’s funerals, car repairs, and college funds and was known to send others on vacation to places like Costa Rica and Ireland. She was also known to pick up many families’ complete Christmas lists.
I’ll never forget how worried I was about changing jobs after a few years due to a scheduling conflict. I was stressed she might be upset with me but she knew it was a better fit and opportunity for me with my family. She sent a dozen roses to my work to wish me well on my first day. I was in tears of joy and I knew she was happy for me.
This is just one person, and these are just a few of the things I can think of to give examples. Every wealthy person I know is extremely giving, not only with monetary gifts but with job opportunities. I know everyone seems to think it is a tax write off and in some instances, sure it is, but not always. I have seen so many people’s lives changed because of acts of kindness from wealthy people. I know there is always the stingy kind but if we didn’t have tax breaks for the rich, would the rich still give freely? Most of the ones I know would still give and help. I’m sure there would be those that don’t. Regardless, communities are changed because of donations, opportunities, and gifts by wealthy people.
Some think wealthy people don’t pay their fair share in taxes and others think they are horrible people and don’t care about others, but I beg to differ. I know quite a few millionaires and every single one of them is known for helping people. You can complain about the wealthy not paying their fair share but I promise you they are a big majority of what makes things happen. Time will tell if they still gift and donate if their tax obligations go up but I vote to let them follow the current code and get the breaks as I’ve seen firsthand the big changes they make.
Let us know your thoughts.
