The use of “wealthy, rich and fair share” is a tool used to create class envy and divide Americans. The fact is higher income Americans do pay their fair share and more in direct and indirect ways.
The fair share myth misleads Americans into thinking all the promises for more and “free” government programs will be paid for by someone else; the wealthy.
The fact is that cannot happen, even the top 1% don’t have enough to pay for Medicare-for- all, free college, a $15 per hour minimum wage, a guaranteed minimum income, a guaranteed government job, or expanded Social Security. Look at European countries and their tax structures and the truth about who pays for socialist programs is quite clear.
To be in the top 1% of earners you must earn at least $480,930. To be in the top one hundredth of one percent you must earn $35.1 million and to reach the one thousandth of one percent your income must exceed $152 million
Speak with any individual about the wealthy paying their fair share and I bet you can’t get them to define either wealthy or fair share. That’s because if they don’t define it, each individual comes up with their own definition and thus the message resonates with just about everyone even while there is a good chance the listener is wealthy by any number of definitions used by government.
If you earn more than $275,000 your earnings above that can’t be counted in a pension plan.
If your income is more than $85,000 both you and your spouse pay higher income-based Medicare premiums.
If your income is more than $100,000 you lose the entire pension exclusion for NJ state income taxes. (Similar types of limits apply in other states)
If you earn more than $47,520 you are not eligible for health insurance premium tax credit.
In NJ if you earn up to $70,000 you can apply to have your property taxes frozen.
If you earn $135,000 or more you cannot contribute to a Roth IRA. If you earn $73,000 or more you cannot take a tax deduction for a traditional IRA.
If you earn less than $500,000 you can take the AMT exemptions, earn more and they phase out.
According to the Census Bureau about 20% of Americans are upper income (or rich) meaning they earn two or more times the national household income of $59,800. So you can be rich with a family income of $119,600. But if you live in New York or NJ you don’t make the grade with that income.