GBUS160 - Homework #1

GBUS160 - Homework #1 - The gap between the top 1 percent...

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Sung Kyu Choi GBUS 160 1/21/2011 Homework #1-Taking It To The Net p.26 #1 Everyone wants lower taxes but everyone should pay their fair share of the cost of government. The wealthy should pay more than average citizen since they have benefited more from our system. The amount should be reasonable and not onerous. According to the tables from the National Taxpayers Union Web site (www.ntu.org) “Who Pays Income Taxes?”, as AGI gets higher by, the wealthy paid much less percentage of their income. Therefore, the gap between the rich and the poor is getting bigger because the rich get richer and the poor get poorer. In years between 1999 and 2008, the top 1 percent of earners paid only between minimum 34.27 percent and maximum 40.42 percent of their income. The top 5 percent of earners paid between minimum 53.25 percent and maximum 60.63 percent of their income.
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Unformatted text preview: The gap between the top 1 percent and the top 5 percent of earners is around 20 percent. The lowest 50 percent of earners paid between minimum 2.7 percent and maximum 4.0. The lowest earners paid small percentage of their income because their income is also small more than ten times less than the top 1 percent of earners. Taxes influence decisions regarding hiring, financing structure, and ownership structure. Taxes also often affect the very decision to launch a business. Given these incentive effects yet another important task for this Administration should be to question whether if there was ever a time when taxes on entrepreneurial activity should be lowered and tax incentives easier to implement for entrepreneurs, it is now. Entrepreneurship offers so many public benefits: jobs, innovation, economic growth....
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This note was uploaded on 06/22/2011 for the course GBUS 160 taught by Professor Quinn during the Spring '07 term at James Madison University.

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