The Continuing Decline of US Tax Revenue
Back in June, I reported on the increasing number of ex-patriots reported by the Treasury Department, and the consequences thereof. Now, the Q2 numbers are out, and they say that tax revenue is declining at a sharper rate. As reported, the Q2 number of reported ex-patriots is 519. That is 20 more than the previous quarter; it is still higher than the quarterly average of 2010. Q2 2011 is the second highest recorded quarter in the last two years. Not to restate the obvious, but it looks to me as the rich know something the average person does not.
What is the Total Loss in Taxes?
Let us go back to our example from the beginning of the year. We will, again, use $ 2.5 million per year as wages , with at least $ 20 million in investment income. Taxes are based on 62% combined wage tax (41.5% base with 3% surtax, 2.5% payroll, 0.9% Medicare surtax (ObamaCare), 10.1% Social Security tax, 4% average state tax) and 25% on investment income. Total tax liability is $ 7,050,000. Now, multiply the tax liability to the Q2 number, and it equates to $ 3,658,950,000. That is $ 141,000,000 more in loss tax revenue over Q1 2011. So, the US Government has lost a total of $ 7,176,900,000 so far. The average now of ex-patriots is at 509 for Q1 & 2. Revising my first number, the new total, based on the 509 number, is 2036 ex-patriots, or, in monetary terms, $ 14,353,800,000 for the year 2011. That is an increase of $ 282,000,000 from my previous amount.
Final Note
I am not going to repeat the reasons for these number. Although these numbers are based on reported, published ex-patriots, these are a small amount of the greater number of ex-patriots that do not come under the IRS requirement to become a published ex-patriot. Unreported ex-patriots are people who are not subject to IRS Code §877 or Code §877A.
- Sizing up the millionaire tax (money.cnn.com)
- Obama says he would accept surtax (seattletimes.nwsource.com)
The Average Joe Economic Show by Brandon Holm (Host) is licensed under a Creative Commons Attribution-No Derivative Works 3.0 United States License.
Based on a work at averagejoeecon.info.
(Source: intltax.typepad.com)
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