Taxes and Government.      Updated: 07.26.2006

From John Mauldin's Weekly E-Letter, 11/1/02:

Dennis Gartman reminded me this week of Governor Huey Long's famous line, "I'll not tax thee, I'll not tax me; We'll tax that fellow behind the tree."

Let's look at the following distribution of taxes paid by various wage earners in the US, as reported by the IRS, for the tax year 2000 (the latest year for which the figures are available):

The top 1% paid 37.4% of all federal income taxes;

The top 5% paid 56.7%.....

The top 10% paid 67.3%.....

The top 25% paid 84.0%.....

The top 50% paid 96.1%.....

That means that 50% of the country paid less than 4% of all incomes taxes. The proportion of taxes paid by the top half increases with each year, and will continue to do so. As Gartman points out, we will soon be in the situation where 50% of the voters pay no income tax, yet can vote for higher taxes to be paid by the top half.

Copyright 2002 John Mauldin. All Rights Reserved (

Keep those numbers in mind when you suggest raising taxes on "the rich." Isn't democracy wonderful? And you wonder why I oppose legislation that can raise taxes with "only" a 51% majority vote ?!

Per John Mauldin's newsletter,

"Today, the median household income is $42,000. 
Above that is the top 50%."

From Investor's Insight, 02.05.2003

The theory is that you run deficits during bad economic times; then you run surpluses during the good economic times; and it should all equal out over the long-run. The problem is, politicians can't resist increasing the size of government, thereby spending the surpluses. The debt just goes up and up and up.

The Parable of Taxes

Tax his land, Tax his bed, Tax the table at which he's fed.

Tax his tractor, Tax his mule, Teach him taxes are the rule.

Tax his cow, Tax his goat, Tax his pants, Tax his coat.

Tax his ties, Tax his shirt, Tax his work, Tax his dirt.

Tax his tobacco, Tax his drink, Tax him if he tries to think.

Tax his cigars, Tax his beers, If he cries, then Tax his tears.
Tax his car, Tax his gas, Find other ways To tax his ass

Tax all he has then let him know that you won't be done till he has no dough.

When he screams and hollers, Then tax him some more, Tax him till he's good and sore.

Then tax his coffin, Tax his grave, Tax the sod in Which he's laid.

Put these words upon his tomb, "Taxes drove me to my doom..."

When he's gone, Do not relax, Its time to apply The inheritance tax.

Accounts Receivable Tax, Building Permit Tax, Driver's License Tax, Cigarette Tax

Corporate Income Tax, Dog License Tax, Federal Income Tax, Federal Unemployment Tax (FUTA)

Fishing License Tax, Food License Tax, Fuel permit tax, Gasoline Tax (42 cents per gallon)

Hunting License Tax, Inheritance Tax, Interest expense, Inventory tax, Revenue Canada/IRS Interest Charges, Revenue Canada/IRS Penalties (tax on top of tax)

Liquor Tax, Luxury Taxes, Marriage License Tax, Medicare Tax

Property Tax, Real Estate Tax, Service charge taxes, Social Security Tax

Road usage taxes, Sales Tax (Provincial and State)

Recreational Vehicle Tax, School Tax, State Income Tax, State Unemployment Tax (SUTA)

Telephone federal excise tax, Telephone federal universal service fee tax, Telephone federal, state and local surcharge taxes, Telephone minimum usage surcharge tax

Telephone recurring and non-recurring charges tax, Telephone state and local tax, Telephone usage charge tax, Utility Taxes, Vehicle License

Registration Tax, Vehicle Sales Tax, Watercraft registration Tax, Water Well Permit Tax, Workers Compensation Tax

COMMENTS: Not one of these taxes existed 100 years ago and our nations were the most prosperous in the world, had absolutely no national debt, and had the largest middle class in the world.

What happened? YOU and I HAVE ALLOWED THIS. WE VOTE in the IDIOTS WHOM WE PAY WAGES TO.. to allow this.. THINK!

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