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The number 1 trillion dollars has been throw around for the total cost of Obama’s economic stimulus plan.  I have a hard time wrapping my mind around the size of 1 trillion dollars so I want to try to break it down.  No, I’m not going to relate it to miles to the moon or or how long it would take you to that high at one number a second (31,710 years), but it what it could mean to the tax payer.

First, to finance the Trillion dollars at the current 10 Year AAA Banking and Finance rate of 5.8% a 50 year loan payment would be 61.4 billion per year.  As of 2007 there were 138 million tax payers in the Unites States leaving a cost of $445 per year for every tax payer for a couple of generations.

Hold on you say, the rich pay most of the taxes (the top 0.1% of income pay 17.4% of all federal taxes) and we’re only concerned about the impact of us normal folks.  Fair enough.  In 2006 the bottom 50% of income earners paid 3.3% of the federal taxes.  So keeping things proportionate the bottom 50% would pay 2.0 billion dollars per year or about $30 per year.  $30 per year doesn’t sound too bad, unfortunately that’s for those making less than $30,000 per year.  Odds are you make more than that.  The top 5% making more than $137,000 per year pay 57.1% of taxes – this would cost $5,081 per year per taxpayer.  Those of us in the middle between $30,000 and $137,000 per year (middle class) would pay $392 per year.  Obama and Biden say they are pushing for the middle class, do you feel you’ll get your $392 worth out of the bailout.  Not just the first year, but every year for 50 years?

Here’s a summary of the tax brackets and estimated costs per year:

Income	% Taxes Paid	% of Population	$$ Per Year
$328,000+	36.9	1	$16,400
$137,000-$328,000	20.2	4	$2,250
$30,000-$137,000	39.6	45	$392
Less than $30,000	3.3	50	$30

Please comment below if this is worth it to you.

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