
This is a book that I believe every American should read. Admittedly, it is about taxes and so may seem a bit dry, but it is chock full of details that will make your blood boil.
Did you know that the richest 1% of the population is about 5 times as rich as it was 20 years ago, but that the bottom 75% hasn't gone anywhere in terms of real income?
Do you know what payroll taxes are? They're the taxes you pay for Medicare and SS, 6.2% + 1.25% which are matched by your employer (a total of 15.3%). Once you make over about $87,000 you don't pay that anymore.
Do you know that for all of our progressive tax system (and oh-so-much complaining on behalf of the rich) the real tax rate for all Alericans is almost the same. Taking into account the payroll taxes we all end up paying somewhere around 20% (with both the megapoor and megarich paying less).
Do you know the IRS audits one of every 70 poor people claiming the Earned Income Credit (a social welfare program to slightly boost the working poor's income), but only one of every 200 or so people making over $100,000?
Do you know the IRS has just about zero ability to analyze (much less understand) the majority of complex tax shelters used by the megarich to hide their income from taxes?
Do you know what the so-called Death Tax is? Sounds scary right? Bush would say it's taking the family farm away from struggling farmers. But that would only be true in any sense if the farm was worth millions of dollars, the Estate tax (it's proper name) was for years before Bush a tax on income after death in excess of $1,000,000 (this year he's raised it to $2.5 million). That means the vast majority of us (unless we hit the lottery) will have zero need to worry about it.
Do you know that corporations just don't pay what they're supposed to? The corporate tax is a flat rate: 35%, but in the last five years 60-70% of corporations paid no tax (many even got refunds!!). [inlink]terry,182[/inlink] All you telling me that even with the internet boom these corporations just didn't make any money?
So anyways the book goes into detail about all of these subjects and more. You don't need to understand taxes to take away from it that the rich are getting richer at the expense of you and me. The tax burden has been and continues to shift onto those least able to carry it. It needs to be fixed. But first of all it needs to be at least basically understood by all Americans. Read this book!