Just to point out the flaws in your logic
1. Your millionaire would quit paying social security taxes after his first $106,800 in income.
Assuming both your millionaire and average guy are self employed your millionaire would pay $13,243 in social security taxes or 1.3% of his income in SS Taxes. Your 34k a year guy would pay $4,216 in social security taxes or 12.4% of his income. So basically what you?re left with is the 34k a year guy?s last dollar tax rate is actually 27.4%. Now that doesn?t even count other regressive federal taxes such as the gasoline tax. Your 34k guy could easily end up paying another 1-2% of his income into Federal government taxes depending on his daily commute. Meaning the millionaire?s effective top rate is really only around 5% more than someone making 34k.
Now let?s have a little more fun with this let?s take a guy who makes 40k instead of 34k his total last dollar federal tax rate would be 25% +12.4% = 37.4% or higher than that of your millionaires 35% +1.3% =36.3% but yet the 40k a year guy gets none of the special beaks you advocate for the millionaires.
2. Your other flaw is you assume that a 35% rate is a 35% rate on all income it is not. Both the millionaire and the guy making 34k pay the same rate on their first 34k of income 15%.
Quote:
Originally Posted by will76
if everyone was taxed at the same rate say 25% then yeah I would agree with you. But since the rich get rapped so bad I don't think it is a big deal that they get some breaks, they still getting rapped more than everyone else even with the breaks.
If you make 34K you are in the 15% tax bracket.
If you make over 373K you pay 35% on everything over that amount.
So lets say someone has to pay taxes on 1 million dollars which is by no means ubber rich. They would pay $219,450 JUST on what they made over 373K to 1M. All together they would owe about 320K in taxes.
The person who made 34K would likely have lots of tax breaks but lets just say they pay 10%-15% on 34K which would be about 5K.
So you have a "rich" person who made 1M and owes 320K in taxes.
You have someone who makes close to avg income making 34K and pays 5K in taxes.
So the rich person gets some tax breaks, lets say he only pays 250K in taxes then. And you bitching ???? he still pays 50x more than then an avg person. His tax bracket even with his tax brakes is still much much more than the person at 15% or even 20%. He is lucky to avg 25-30% with lots of tax breaks.
How is that fair. I understand the more you make the more you pay but the % should be the same. It should be a flat 20% or 25% and no tax breaks for anyone. But since they rape the rich by increasing the tax brackets how can you bitch if they give a little back, the net affect is that rich people still pay a bigger % of their income to taxes not to mention the shear amount of taxes they pay. In my example, the "rich" person pays the same amount in taxes as 50+ avg people. But yet that "rich" guy still gets the benefits from said taxes (roads, schools, defense, etc.) as 1 person but he pays 50x for it.
If you don't get all of this and you still bitch that the "rich" get some "breaks" then you are either stupid and don't get it or just a rich hater.
If someone took 3 dollars from you and took 10 dollars from me but gave me 2 back... im still getting screwed but you bitching because I got back a little something but you ignore the fact of how much more they took from me in the first place.
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