There are over 25 million businesses in the US but companies which make up the Standard & Poor 500 contribute over 26% of the US government’s annual $2.4 trillion tax take. These 500 businesses are 6.5% of the total number of listed businesses .
Across the Atlantic, in the UK, the FTSE 100 index of companies contributes 3.3% of Her Majesty’s tax take. Even if you add in the salaries and other taxes that these companies manage on behalf of Treasury, it is no more than 7%.
The US taxation system is what is known as progressive; it falls more heavily on the wealthy than on the poor. The intention is that it is to be fairer. And so, in the US, the top 10% of taxpayers contribute 70% of taxes, and the top 1% contribute 40% of taxes. Conversely, the bottom 40% of registered taxpayers actually received more money back through tax grants than they contributed through their incomes.
Depending on how you feel about rich people, you could be cheered or charged about such information. However, you shouldn’t be surprised at the consequences. Continue reading