The fact is that to balance the budgetary expenditures of 2012 with income taxes, it would take an income tax rate of 100% on everyone earning down to $100,000. If the govt then spent more, the tax would have to move down to lower incomes ... that is JUST for Federal expenditures. That does NOT include costs of running state and local govts.
I keep mentioning, but no one seems to notice, that in addition to the income tax, we pay TONS of other taxes that are hidden in other ways we don't notice. I have my cell phone bill in front of me to pay. The program I have is $40 for 700 minutes. (It's amazing how cheap that is, since I "upgraded" from a plan of $39.99 for 450 minutes). On that bill are Fed tax of $1.72 and PA gross receipts tax (sounds a bit like the tax proposed on medical devices) of 2.25. There is also a "regulatory charge" of .16 (I suspect that is another tax passed through the utility from the govt). Total: $4.13. That comes to 10% of the original bill. We would be very upset if the Fed proposed a 10% sales tax on phone service ... but this tax is there, but nobody ever talks about it, or the legislation that imposed that tax on EVERY cell phone bill.
EVERYBODY pays that tax who pays their own cell phone bill ... even the family of 4 earning a lot less than most of those on this forum. Those who get social services that provide them with a free cell phone don't have to worry about that 10% "tax". Cell phones were once considered a luxury. Today they are practically a necessity for most working people. As a Realtor, if I didn't have a cell phone, it would be unthinkable that I could conduct my business today. So, if we were complacent when these taxes were enacted because they would only apply to "the rich", we were snookered. The same is true of your land-line, except the percentage is even higher.
Obama and the Dems continue to add in their speeches that we ALL have to sacrifice ... are you really willing to believe that they will stop at $200,000 earners? Unless we take a very serious attitude toward cutting spending, there is simply NO WAY that we will ever balance a budget, much less get out of debt.
Look at where Susana Martinez started at cutting expenses ... with govt expenses that favored elitism for the high-level govt employees over the taxpayers. Just imagine the savings that could be made if ALL Fed employees, including the legislators!, were made to join the SS program. That, alone, would make a big dent in the expenditures; and if all the funds in that retirement program were put into the SS program, it would solve a large part of SS funding ... and if those legislators were dependent upon SS, just think how fast they would find a way to make it secure for the future.