I don't know how it works in the U.S but here I think the poor they would be the unemployed the disabled and the working classes. The middle classes pay a lot of tax but rich can get away with paying nothing and 1%. So a cleaner pays more tax than some multi millionaires.
Contrary to "trickle down the theory" the middle class are the engine of the economy. If taxes are not progressive and taxation becomes more burdensome for the middle class, their spending power decreases. Hence demand slows. When demand slows companies stop producing unwanted products...that causes layoffs and decreases the ability of the middle class to purchase. Government tax revenues decrease which in turn decreases the amount of money available for social good programs that impact the poor. The rich on the other hand move more of their investments offshore and possibly cut the hours of the pool boy or hire an undocumented worker who will work for less money.
Always the middle class. The rich can afford, the poor don't pay so the ones that ger hit the hardest are the middle class. Such an excellent question!
think the middle class, we arent poor, but, neither rich..live paycheck to paycheck..money doesnt seem to go far, everytime you turn around another tax..or increase on existing taxes.
Taxes on the rich affect the middle classes because it means they charge more for services and create less jobs, and many emigrate, reducing tax income, meaning it has to be gathered in other ways, i.e., from the middle classes. Taxes on the poor don't affect them that much because they're so low... Also, higher taxes on the middle classes mean employers can't afford to pay as many people, which means longer hours, decreased productivity and lower wages.
You realize that a business owner can write off 100% of the wages paid to an employee. Thus if a business owner grosses $300,000 and has an employee making $100,000 the business owners taxable income would be $200,000 assuming no other deductions. There are always other deductions.
The poor pay a greater percentage of their income in taxes.
Yes, which is why they tend to employ more people. But when there is a tax on jobs, like Employer's contributions to taxes, sometimes the taxes get so high they're better off keeping it. And I don't know about the US, but the tax rate increases as income increases in the UK...
The US also has a progressive income tax. FICA taxes are a flat tax that only hits the first $106,000. Sales taxes vary by state but are also a flat tax.
Which taxes? Most jurisdictions have sales tax of which all pay and impacts the wealthy less. and there are plenty of folks on minimum wage who still get some income tax taken off their checks. You claim that 55% pay nothing is ludicrous, hold a vote!
The poor pay a greater percentage of their income in taxes.
51% of Americans Pay No Federal Income Taxes (still over 1/2).
Deal with it.