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by Robert Heston

Created on: March 19, 2010   Last Updated: March 20, 2010

The poor and middle class in the U.S. are being figuratively raped by the rich, who don't pay their fair share in taxes. The richest 1% of the people in this country own 42% of the wealth, roughly the same amount that's owned by the poorest 90%.

In 2007, maverick billionaire Warren Buffet said that he paid 18% in taxes, while his staff paid 33%, or close to double as a percentage of what he paid.  He challenged his fellow billionaires to crunch their own numbers and prove him wrong, to date none have.

Whenever there's talk of adjusting the tax rates, inevitably there's a heated discussion over who is and who isn't rich. At one time President Obama was talking about a top tax rate for all those making over $250,000 a year. 

Those in the top 1% financially must love how this relatively low figure lowers what would otherwise be their fair share of taxes. Let's keep in mind that this top 1% are big contributors to political campaigns. While most income earners would be happy to earn $250,000 a year, that's a drop in the bucket when compared to what the richest 1% of Americans earn. 

Divide and rule has long been a favored tactic used by the ruling elites, and that's exactly what's happening here. As long as the majority of people are fighting among themselves over trivial matters, the elites have nothing to fear.

When discussing taxes we need to keep in mind the different ways that we're taxed. The highest tax rates are on "earned income", another name for jobs, and the main source of income for most people. "Capital gains" are profits from investments, and are taxed at a considerably lower rate than earned income. 

Capital gains are the major source of income for the richest 1% of Americans.  In addition, the amount that's currently paid into Social Security and Medicare is based on earned income, not capital gains. Then there's "user fees", which in many ways appear to be taxes hiding under a different name.

Whenever there's talk of changing the tax rates on the rich, we're predictably met with a flood of crocodile tears and a sob story about the evils of income redistribution. Here's a cold, hard, fact. Income redistribution is already taking place, and it has been for several decades now. 

In many ways it's even fair to say that class warfare was declared, and the poor and middle class are losing. The bailouts are the most blatant act of thievery by the rich to date.

In December 2006, Gerald Celente, editor and publisher of the Trends Journal was interviewed by Linda Moulton Howe. Celente said that in the late 1960's the income differential between C.E.O.'s and their average workers was about 25:1. By December 2006, that ratio was over 400:1!

Presently, the gap between rich and poor is wider in the U.S. than any other major developed country, with the exception of Mexico and Russia. Income redistribution is already taking place, and there's no question that the richest people in this country don't pay their fair share in taxes. They're not only on a free ride, they're being paid to take that ride.    

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