Reply to Study shows that 350k/year is barely scrapping by as middle class

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Reply to "Study shows that 350k/year is barely scrapping by as middle class"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Both sides debating this are idiotic. Yes, its fun to come up with wacky hypothetical to test principles. But you are all wasting your time. Some rich billionaire has paid alot to incite class warfare and you guys are falling for it.

Here is the truth: Everyone who has to work for a living lives a very, very different lifestyle from those that don't. Some make more and some make less. Maybe some are rich. As long as the capital gains tax rate is less than the maximal income tax rate, and as long as the Warren Buffets of the world pay a lower tax rates than their secretaries, we are all losing.

[b]When a NY City police officer pays a higher tax rate than a hedge fund manager, that's capitalism?[/b]

When an NFL owner gets YOU to pay for his stadium, that's capitalism?

Unfortunately, 40% of the country thinks it is.
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Stop lying.  Earned income is taxed differently than wage income.  Do you even know why?  My guess is you don’t.

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Let me guess, because they're "job creators"? Next time you call 911, ask for a hedge fund manager and see what he can offer.[/quote]

Mainly because the fund manager income has already been taxed before, the amount he earns now due to investments increasing is taxed at 23.8% which is slightly lower than some of those significantly lower paid professions.[/quote]

No. You do not understand how the 2 and 20 model works. Carried interest is taxed at a lower rate because it is cap gains. [/quote]

You are right, a portion of the fund managers income is taxed at ordinary income rates (2% assets under management), and a portion of his income (20% performance bonus on fund growth) is taxed at cap gains rates. The argument is should this performance bonus be treated like a cash bonus would? Or should it be treated like investment growth?

So most hedge fund managers are actually paying significantly more than the 23.8% cap gains rate because much of their compensation comes from the 2%AUM fees however when they manage to cause significant growth in their fund and generate those performance fees their overall tax rate will go down.[/quote]

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