JDPriestly
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Wed Sep-01-10 11:52 AM
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Hope I am not violating a rule, but I want to be sure everyone |
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sees the following post. http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x9055979It is about how the "your Social Security retirement funds have been spent" lie is a way to force poor and middle class Americans to pay higher tax rates than the wealthy. Fie on all their houses.
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Catherina
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Wed Sep-01-10 11:53 AM
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midnight
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Wed Sep-01-10 12:00 PM
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2. I don't know if I understand why those who make less pay a larger fed. marginal tax? |
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"This can be illustrated by the fact that the highest marginal tax rate if felt by a middle class American earning $106,800/year. This middle class American pays a marginal income tax rate of 28%, plus FICA tax of 12.4% (whether this is paid as a 12.4% self-employment tax, or as double 6.2% deductions from wages, the tax burden is identical) and Medicare tax of 2.9% on his/her entire income, for a total federal marginal tax rate of 43.3%.
Meanwhile, those in the supposedly top tax bracket (earning over $373,650/year in regular earned income) pay a marginal income tax rate of 35%, but have a 2.9% Medicare tax and zero% FICA tax on income over $106,000, thus yielding a total federal marginal tax rate of 37.9%.
(And at the same time, interestingly, an American trust fund baby with an income of $1,000,000/year consisting totally of long term capital gains pays a 15% capital gains tax, zero FICA tax, and beginning in 2013, a 3.8% Medicare tax, for a total federal marginal tax rate of 18.8%.)"
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unblock
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Wed Sep-01-10 12:43 PM
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3. meaning, you don't understand the math, or you don't understand the politics? |
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the math is simply that the tax on social security drops to zero once you hit the $106,800/year limit. so anyone who earns above that amount gets a tax break on the income beyond that amount.
the politics is basically that the rich control the government and have created and preserved a nice break for themselves and are not about to give it up.
oh, wait -- were you looking for some kind of logic or justice in this? sorry....
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Raster
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Wed Sep-01-10 12:51 PM
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4. That 'bout sums it up... part of the Raygun "Save the rich" non-tax package. |
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Along with "tinkle down." May the Great Bullshit Artist fry in hell.
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shraby
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Wed Sep-01-10 01:07 PM
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5. This is a big spot where the media is failing the citizens...and |
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not being the watchdogs and truth-tellers on congress. That's why they are in the first amendment..to keep tabs on what the ordinary citizen doesn't have the resources to do.
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DU
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Wed May 08th 2024, 09:09 AM
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