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Old 10-27-2011, 10:24 AM  
TheDoc
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Quote:
Originally Posted by 12clicks View Post
silly kid. here's the whole paragraph that you cherry picked a sentence from to seem right.. They're clearly including the payroll and SS calculation in the chart.
nice troll though.
However, these numbers do not include payroll taxes. Social Security tax is no longer collected once a person makes more than $106,800, so the share of such taxes declines quickly for wealthier groups.

Thus, the top one percent pay an effective rate of 1.6 percent on social insurance taxes, compared to an effective rate of about 9 percent for most other income groups. (The data are further distorted by the fact that some wealthy individuals, such as lawyers, are paid through corporate structures, so their taxes are listed as corporate income taxes.)

When you add up all of the various taxes, and look at the effective tax rates, it is clear the tax system is already pretty progressive. Everyone pays some tax, even those who pay no federal income taxes, and the wealthiest pay a larger percentage share of taxes. Here’s the effective tax rate for all of the groups, according to the CBO
lol, thanks for proving I did quote the entire paragraph.


And btw, effective tax rate = total share of taxes paid as a percentage - or the rate of it really, which is exactly what I've been saying. Adding up the total money spent on taxes is how they came up with this number.

Which is vastly different than taxes as a percentage of income. If a person each month is left with $100, then gas tax as a percentage of income is going to hit them MUCH harder and larger than a person with millions.

That's what taxes as a percentage of income means, it's not really possible to confuse the two.
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