According to the IRS, a $400,000 or more annual household income represents America’s top 1.8 percent income-earners. Per IRS Publication 6292, there were 154 million tax returns filed in 2019, thus approximately 2.8 million people earn over $400,000.
An estimated 330 million people live in the United States. Millions of illegal aliens have and are coming so this number is on steroids.
According to the Social Security Administration, 69.1 million people received benefits from programs administered by SSA in 2019; and 5.7 million people were newly awarded Social Security benefits in 2019.
With 2.8 million people making over $400,000 a year, they alone cannot solve the financial problems of America’s government. Telling Americans that we are going to stick it to the rich or 1.8 percent of our country to carry 70 million retirees and millions of illegals flooding into our country is just political rhetoric.
Most people aren’t doing great when it comes to saving for the future. A 2020 SSA study found that 40 percent of Americans rely on Social Security as their sole source of retirement income. The average annual Social Security benefit for a worker is nearly $20,000, hardly enough money for most retirees to subsist on.
The U.S. Department of Labor data shows that there were 113,062 pension plans in 1990, but only 46,869 in 2018. The average private pension in the United States today is about $10,788, according to data from the Pension Rights Center.
In 2023, the year in which the legislation will increase tax revenue most, individuals making less than $10,000 per year will pay 3.1 percent more in taxes and those making between $20,000 to 30,000 per year will see a 1.1 percent tax increase, the Joint Committee on Taxation (JCT) analysis showed. Tax revenue collected from those making $100,000 per year or less would increase by $5.8 billion in 2023 under the Inflation Reduction Act!
In addition, the share of tax revenue collected from all Americans making more than $200,000 per year would remain at the current percentage, according to the JCT. Taxpayers with an annual income of $200,000 or greater pay more than 57 percent of all federal income taxes.
Will America’s seniors eventually pay more in taxes? Currently retirees may pay income tax on up to 85 percent of benefits if the combined income is more than $34,000. Combined incomes between $32,000 and $44,000 may be taxed up to 50 percent of the total, and above $44,000 may be taxed up to 85% of the total if you’re married and filing a joint return. Do you think these numbers will go down? There is only one way that taxes have gone in America – up.
Our problems cannot be fixed by one small group of Americans.
We must have a flat tax for everyone making over $50,000.
We have to stop the influx of illegals.
We must be self-sufficient in energy and manufacturing.
Many retirees who are physically able may have to go back to work to survive inflation.
In the meantime government must help us by eliminating the billions of dollars wasted each year. Also, they need to stop trying to convince us that they are going to fix our problems by only going after 1.8 percent of the America people.
Dr. Glenn Mollette is an author and his column is published in over 600 publications in all 50 states.