Progressive vs. Regressive Taxation

[Martin Hash]

The median income in the U.S. is $52K. Average CC debt is $16K, which took about 5 years to accumulate. So, roughly, for every $1 the average American earns, their investing return -6%. THAT'S NEGATIVE SIX PERCENT.

Let's calculate the ROI for the 1%:
1% of the population have 40% of America's wealth, and they get $4 trillion of the nation's GNP every year. Since America's wealth is $86 trillion, that means for every $1 the 1% has, their investing return is %12. THAT'S A POSITIVE TWELVE PERCENT.

This means that for every $1 taxes taken from the average American and subsequently spent by government, the average American gets 94 cents, and the 1% get $1.12. (The economy isn't zero sum, so the two numbers don't add to $2.)

REGRESSIVE taxation takes $1 and returns 94 cents to the average American, while returning $1.12 to The Rich.
PROGRESSIVE taxation takes money from The Rich and redistributes to everyone else.