Budget of $3.8 trillion.
= $11,757.33 per person per year.
Okay, so if you have kids and a non-working spouse, you need to pay more in federal taxes. What is the salary needed to pay this federal tax?
$40k/year has a federal liability of $3,394.
$80k/year has a federal liabliity of $12,219.
$78k/year has a federal liability of $11,719.
So single filing tax payers need to be making $78k to cover our federal costs. Meaning the vast majority of earners cost more than they contribute. Now, obviously my calculation is a little stupid. I’m not taking into account the 6.5% social security that’s used to pay a big chunk of the entitlement costs. But — point is — the average American joe isn’t contributing the average cost, and is expecting the higher income people to make up for it. For example, I pay about 3X what I cost.
What happens to a society in the long run when the average joe doesn’t pay for himself and isn’t expected to?
Q: How much would you raise taxes to make sure the average payers are paying for themselves?
This is approximately how things work in the United States. The top 1 percent of taxpayers earn 19 percent of total income and pay 38 percent of federal income taxes. The bottom 50 percent earn 12 percent and pay 3 percent. This chart from the Heritage Foundation shows net taxes paid and benefits received, per person, by household income group: