Taxes+are+they+fair?+Two

Read the quotes. Create a "Pages" document draw a line down the middle vertically to divide the paper in two. At the top of the first column write "for" and at the top of the second column write "against." Based on the quotes that you read, and on their earlier reading and discussion, come up with arguments for and against President Obama's millionaire tax proposal. List them in the appropriate column on your "Pages document.

**Student Handout**

**What people say about taxing the rich**

We are often reminded these days that the top 1% of earners in America pay about 40% of the nations federal income taxes - nearly double the share they paid in 1980. The latest to weigh in on this factoid is billionaire-mayor Mike Bloomberg, who disputed the Buffett doctrine and said that, "A very small percentage in this country pay a big chunk of the taxes." Republicans say the high share is due to our overly progressive tax structure and growing programs for the rest of the non-taxpaying Americans. Democrats, to the extent that they even concede the number, argue that it's because the rich now make all the money. Who's right? An article in the //Economist// states the answer quite simply: "In America the income share of the rich has grown faster than the[ir] share of taxes paid." …. In other words, the top 1% share of income grew nearly five times faster than their share of taxes. …. [So] when pundits and politicians talk about the rich paying "a big chunk," they should be clear that it's because the rich earn "an even bigger chunk."
 * Quote Number One: **

September 26, 2011

Why the Rich Pay 40% of Taxes

By Robert Frank

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**Quote Number Two:** The wealthiest 1 percent of the taxpayers pay 34 percent of all federal income taxes. The top 50 percent pay 96 percent of the total bill. This means that the least wealthy 50 percent pay almost nothing. …. In the name of justice, the President, Congress and the American public should be demanding a tax cut that lowers the tax bill of the wealthy. But the opponents of tax cuts do not want justice. They want redistribution of wealth. They want to confiscate the income earned by the wealthy and give it to people who have not earned it. They want the rich - which includes the most productive people in society - to be the servants of the poor. <span style="font-family: Verdana,Arial,Helvetica,sans-serif;">April 15, 2002

<span style="font-family: Verdana,Arial,Helvetica,sans-serif;">A taxing question: Just what is fair? System puts unfair burden on wealthy

<span style="font-family: Verdana,Arial,Helvetica,sans-serif;">By Edwin A. Locke at [|articles.philly.com]

<span style="font-family: Verdana,Arial,Helvetica,sans-serif;">**Quote Number Three:** <span style="font-family: Verdana,Arial,Helvetica,sans-serif;">Ari Fleischer, the former Bush White House spokesman, once said "50 percent of the country gets benefits without paying for them." <span style="font-family: Verdana,Arial,Helvetica,sans-serif;">Actually, they pay lots of taxes - just not lots of federal income taxes. Data from the Tax Foundation show that in 2008, … millions of … poor [Americans] do not make enough to owe income taxes. <span style="font-family: Verdana,Arial,Helvetica,sans-serif;">But they still pay plenty of other taxes, including federal payroll taxes. Between gas taxes, sales taxes, utility taxes and other taxes, no one lives tax-free in America. <span style="font-family: Verdana,Arial,Helvetica,sans-serif;">When it comes to state and local taxes, the poor bear a heavier burden than the rich in every state except Vermont, the Institute on Taxation and Economic Policy calculated from official data. <span style="font-family: Verdana,Arial,Helvetica,sans-serif;">April 13, 2011

<span style="font-family: Verdana,Arial,Helvetica,sans-serif;">9 Things The Rich Don't Want You To Know About Taxes

<span style="font-family: Verdana,Arial,Helvetica,sans-serif;">By David cay Johnston at [|3quarksdaily.com]

<span style="font-family: Verdana,Arial,Helvetica,sans-serif;">**Quote Number Four:** <span style="font-family: Verdana,Arial,Helvetica,sans-serif;">This proposal makes sure millionaires and billionaires share the responsibility for reducing the deficit. It would correct, for example, the fact that [multibillionaire] Warren Buffett's secretary currently pays taxes at a higher rate than he does. <span style="font-family: Verdana,Arial,Helvetica,sans-serif;">The other side is already saying it's "class warfare" - that's their rhetorical smokescreen for providing millionaires and billionaires special treatment. <span style="font-family: Verdana,Arial,Helvetica,sans-serif;">As the President said this morning, "This is not class warfare - it's math." <span style="font-family: Verdana,Arial,Helvetica,sans-serif;">The wealthiest Americans don't need further tax cuts and in many cases aren't even asking for them. Requiring that they pay their fair share is the only practical way forward." <span style="font-family: Verdana,Arial,Helvetica,sans-serif;">September 20, 2011

<span style="font-family: Verdana,Arial,Helvetica,sans-serif;">Jim Messina, President Obama's 2012 campaign manager, quoted in "Some Thoughts on Obama's Deficit Plan, Class Warfare, and Equal Protection" by Curt Bentley at [|UtahPoliticalSummary.com]

<span style="font-family: Verdana,Arial,Helvetica,sans-serif;">**Quote Number Five:** <span style="font-family: Verdana,Arial,Helvetica,sans-serif;">President Barack Obama is right. It is time for "fairness." It is time to ask some Americans to do more, contribute more, sacrifice more. <span style="font-family: Verdana,Arial,Helvetica,sans-serif;">But like most things Obama does, he has singled out the wrong group. The rich and business owners already pay far too much in taxes. They already sacrifice too much. They already share their wealth too much. The top 1 percent of income earners … already pay 40 percent of the personal income taxes in America, more than the bottom 95 percent combined. …. <span style="font-family: Verdana,Arial,Helvetica,sans-serif;">Now is not the time to target, demonize, and punish them, it's time to reward them. It's time to stop class warfare and tell the truth. …. <span style="font-family: Verdana,Arial,Helvetica,sans-serif;">Yes, we need more "fairness." The problem is that Obama voters, those doing the most protesting and complaining, are the ones who need a refresher course in the definition of "fair." They want something for nothing. It's not just that they 'want' it, they 'expect and demand' it. <span style="font-family: Verdana,Arial,Helvetica,sans-serif;">It's no surprise when pollsters ask Obama's voters if others should pay higher taxes, they emphatically scream "YES!" Why not? It costs them nothing, and they get 100 percent of the benefits. <span style="font-family: Verdana,Arial,Helvetica,sans-serif;">So, Obama is right. Let's make the tax system fairer. Let's ask Obama's voters to sacrifice, contribute, and bear at least a little more of the load. <span style="font-family: Verdana,Arial,Helvetica,sans-serif;">September 26, 2011

<span style="font-family: Verdana,Arial,Helvetica,sans-serif;">Rich Already Pay More Than Their Share

<span style="font-family: Verdana,Arial,Helvetica,sans-serif;">By Wayne Allyn Root on [| Newsmax.com]

<span style="font-family: Verdana,Arial,Helvetica,sans-serif;">**Quote Number Six:** <span style="font-family: Verdana,Arial,Helvetica,sans-serif;">"Nobody got rich in the US on his own, said Massachusetts Democratic Senate candidate Elizabeth Warren. "You built a factory out there? Good for you," she said. "But I want to be clear. You moved your goods to market on the roads the rest of us paid for. You hired workers the rest of us paid to educate. You were safe in your factory because of police-forces and fire-forces that the rest of us paid for. You didn't have to worry that marauding bands would come and seize everything at your factory -- and hire someone to protect against this -- because of the work the rest of us did." <span style="font-family: Verdana,Arial,Helvetica,sans-serif;">Warren added, "Now look, you built a factory and it turned into something terrific, or a great idea. God bless -- keep a big hunk of it. But part of the underlying social contract is, you take a hunk of that and pay forward for the next kid who comes along." <span style="font-family: Verdana,Arial,Helvetica,sans-serif;">September 22, 2011

<span style="font-family: Verdana,Arial,Helvetica,sans-serif;">Elizabeth Warren quoted at Drudge.com

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** 1. Were there similarities/differences? Describe. ** ** 2. What did you learn in this activity ** ** 3. Did you change your views in any way? How? Why? ** ** 4. In some of the quotes, people mention "income redistribution." What does that term mean? What are your thoughts on income redistribution? **