I listened to a presidential candidate today. He went into the now obligatory sob story about an individual who had approached him at a rally. The man was working two jobs to pay for his daughter's expensive college tuition.
"But the government takes most of his wages from that second job," declared the candidate. "Thanks to the IRS, he's barely ahead from all his hard work. Then, when he dies, the government taxes him again!!"
The audience ate it up. But it was all a lie. I don't know whether a man actually told him that story, or, if he did, whether the candidate believes it. But the ignorant people in his audience believed it.
Here's the truth: The highest marginal rate we have in this country is 35%. That's far from "most" and that's the rate you pay on taxable income above $349,700. Do you know anyone who makes $349,700 after all deductions from working two jobs? I didn't think so. And neither does Mike Hucksterbee.
Here's the rest of the story:
On the first $15,600 of taxable income, Bill Gates and the poorest wage earner pay exactly the same rate, same amount - 10% or $1,565.
On the next $48,050, Gates & the middle class again pay the same, 15% or $7,207.50. We've all paid at this point $8,772.50 on $63,650 or 13.8%. Is that "most"? Not yet.
Likewise on the next $64,800 (total $128,450), Gates and the rest of us pay 25%, or $16,200.
You get the idea. Up to $128,450 of taxable income, everyone pays exactly the same amount, $24,972.50, which is 19%. Even if a taxpayer makes $350,000 in a year, his total income tax is $94,706, or 27%. That is certainly not "most".
And that part about the government taxes him again when he dies? Only if he leaves more than $1million in liquid assets or about $4 million in a family business, including a farm.
I know income tax in America is complicated, but it's apalling how ignorant people are about this simple part. And demagogue Republicans seem to lead their flock around by their tongues.
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Comments: 17
I'm already surprised at what I find - ignorant assholes who only want to take advantage of the American infra-structure without paying taxes to maintain it. Also ignorant assholes who think all they have to do is abolish the IRS and everything will be just wonderful.
It is fashionable to hate the IRS, but they have a really nasty job. Our income tax is collected on the "honor system." We compute our own tax bill. No tax assessor comes around and audits our personal finances and computes that tax for us. Human nature being what it is, a fair number of people cheat in that computation, and the IRS tries to catch them. The IRS acknowledges that a lot of tax revenue is lost to the cheaters, and yet the IRS is attacked for their efforts to uphold the tax laws.
You have it right. And the snakes among the current pres candidates who get cheers for advocating abolishing the IRS are disingenuous. Flat tax, fair tax whatever you call it, somebody's going to have to collect it. And don't get me started on HUckabee's "fair tax". Pure stupidity
What bothers me during the current economic crisis is how so many people with high-paying jobs that helped bring on the mortgage crisis look to the government to bail the economy out when at other times, such as tax time, they don't want the government to do any regulation.
THE SHEEPLES who pay FEDERAL INCOME TAX on THEIR LABOR are being screwed 100%....THERE is no income tax on LABOR! You think that the income tax pays for what? I don't recall the American Taxpayer ever asking for any unNeeded Federal Agency! Income tax does not even cover our interest on Federal Debt!
We don't need 90% of ALL Federal agencies! The Social Security Agency is one of the worst! WE never asked for it! It is massively in debt now, and will never be out of debt! Folks like you don't realize that it never had to be in debt! We sure don't need the CIA, NSA, and all those obiminations!!!!
It does not take a rocket scientist to figure out what our government is doing to us! They are creating debt, that we simply can't ever repay! It is 100% impossible for Americans to repay the debt we now owe! Most of that profit has been sent to the world bank.....better known as the federal reserve bank....a private bank!
You hear about forclosures every day now....well, that is the world bank TAKING property away from Americans! I have nothing against Jews, but they control most of these banks!, and they have no heart! There is no reason to forclose on a mortgage with an astronomical adjustible rate!!!! Just give the folks a fair rate instead!!!! There are lots of Jewish Hitlers out there nowadays!!!!! I have news for them...what goes around comes around!!!! Welcome to the third world war!!!
I would prefer that our taxes were spent more wisely, even if that meant paying more of them. I'm not convinced that is so today, in many ways, but I also believe that there is a great deal more this government can do for the people that foot the bill for it.
sad as it all is, reading "educated" people say that taxes aren't high enough on some people highlights the crunch when it comes is going to be big and problably very shocking if not bloody.
The middle class - those earning between 50% & 75% of the nation's income bear the per capita brunt of tax revenue - might have reason to, but there's never been a revolt of the middle class in history.