Tuesday, September 18, 2012

Romney Was Right About the 47%

I know some people are trying to get upset by Romney's comments about the 47%, but he was right. 47% of the people in this country pay no income tax and hence have no interest in either cutting taxes or spending.  It's simply not in their interest.  That's not to say that all 47% are bad, there are definitely people who legitimately don't pay taxes. If they just lost their jobs, if they are just out of school and in an entry level low paying occupation and the elderly. But it seems pretty clear that there are also a lot of people who should be paying taxes but aren't. According to the chart below from the Heritage Foundation, back in 1969, only 1/8 of the people didn't pay taxes, by 2000, 1/3 didn't and now we are at 1/2.

Also, an increasing percentage of our federal budget is made up of transfer payments, essentially robbing Peter to pay Paul:

Ending welfare as we know it seemed to only make a temporary dent in the government redistribution juggernaut.


  1. How much of this is due to inflation eating into living standards and an increasing absence of anything but low-paying service jobs which offer no room to move up the ladder? It's not a matter that more people are getting lazier, but more people are being made poor - they are victims of government. Are the 47% who don't pay taxes assuming a greater portion of the wealth? Who did the bailouts and the QE's benefit? And Obama facilitated the massive theft better than any Republican ever could. Maybe that's why Goldman Sachs used to be Obama's no. 1 fan, because they could hide their theft behind the Communist, and now it's come back to bite them in the butt.

  2. A lot of it actually is due to the Bush tax cuts which raised the point at which people are exempt from paying taxes. Thanks to him we may be getting to the point where people can vote themselves benefits without having to pay for them.

    Obviously a lot of this is also government fault for creating a situation where its almost impossible to create a new manufacturing business due to all the environmental and labor regulations you have to deal with. That's why tech is one of the few sectors still seeing growth, there isnt as much regulation of offices as compared to factories.