If asking a billionaire to pay the same tax rate as a ... janitor makes me a warrior for the working class, I wear that with a badge of honor. I have no problem with that.
~ Barack Obama
Grouch: Last week we looked at the average tax rates by income levels according to IRS data collected in 2009 (see Omaha Hokum: IRS Data Contradicts Premise for the Buffett Rule). If we assume the average janitor makes $75K (which probably means they work for the Feds, the state or a municipality, but not the private sector), then on average they pay 11.3% of their income in federal taxes. My question on the President's statement above is does he mean that billionaires should have their average tax rate reduced from approximately 26.3% to 11.3%, or does he mean that janitors should have their taxes raised from 11.3% to 26.3%? Everyone knows the government is starved for revenue to keep up with spending, but there is much more revenue to be gotten from one choice than the other.