We Get Letters

From a fan..

"'So you see, the rich don't pay taxes...while the aforementioned rich
folks just don't want to be troubled by paying taxes because that
might cut into weekends in the Hamptons but... Sigh....'
Rich people dont pay taxes? Can you direct me to a web location that
I may view the facts on that?
Bonus Question: Do not 'rich' people, like Donald Trump for example,
exploit (have exploited) the current Bankruptcy laws? Why are you
reducing this to a rich guy vs poor guy thing, when thats clearly not
the whole picture?"

My reply..

"I wasn't attempting to say that I believed that the rich don't pay taxes. I was actually referring to the quote above it (or the other one below it), in which BUSH said that the rich don’t pay taxes, and then comparing that with his concern about bankruptcy. He showed no concern or attempt to make sure that the rich actually paid their portion, he simply stated that they don’t, but he actually signed legislation to screw those who try to escape their ‘debt to society’ through bankruptcy.

As to statistics.. I have seen them, but don’t have time at the moment to look them up, but trust me, the vast majority of those declaring bankruptcy aren’t those people like Donald Trump. They’re people without insurance when Dad breaks his leg and can’t work for a month or two.. Bankruptcy is much more common for the poor than for the rich.

I was simply trying to point out Mr. Bush’s inconsistency. We can’t raise taxes on the rich because they simply won’t pay them, but we need to keep the poor from not paying their bills through bankruptcy.

Oh hell… I looked up some of the statistics.

http://www.uscourts.gov/Press_Releases/bankrupt_f2table_sep2004.xls

What Trump used was a ‘reorganization’ bankruptcy. Chapter 11. There were 932 Non-Business Chapter 11 filings in 2004. Most people (not the extremely wealthy) use Chapter 7 (1,133,622 in 2004) or Chapter 13 (449,613 in 2004). In other words, the Chapter 11 reorganizations were about 6% of the bankruptcies. The remaining 94% were not Donald Trump types., and THE NEW LEGISLATION ONLY AFFECTS THOSE FILING CHAPTER 7. He didn’t make it harder on Donald Trump, just the other people.

Here’s a few other statistics (not from an amazingly valid source, but sounds very much like what I heard previously from more reputable sources)

http://www.bcsalliance.com/y_debt_medical.html

“Most people think that most of those who file bankruptcy did so because they got way over their heads in credit card debt; however, research shows the truth is much more surprising. For the years 2003 and 2004, just over 50 percent of all personal bankruptcies were the result of medical debt by those with health insurance. A significant percentage of those listing medical debt as the reason for their bankruptcy are 65 and older. Other groups disproportionately bankrupted by medical debt include single women raising children on low wages or who have been abandoned by their husbands who refuse to pay child support.

The medical debt causing these bankruptcies isn't overwhelming in many circumstances. Statistics available in 2003 are as follows: about 20% of bankruptcy filings involve a medical debt of less than $1,000; about 40% involve a medical debt of less than $5,000; and 13% of bankruptcy filings involve a medical debt of over $10,000.”

Rebuttal?"

And thanks for playing..