Reply to I don't get the whole "fake rich $250k" thing. We make just under 200k and are more than comfortable

Forum Index » Money and Finances

Reply to "I don't get the whole "fake rich $250k" thing. We make just under 200k and are more than comfortable"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]Sorry, I'm happy to pay my share of taxes - and I do.  But it's ridiculous that major corporations and millionaires pay less of a percentage in earnings than my family earning $160k a year.  We live modestly, work hard, and make smart choices with our money (saving for retirement over vacations and expensive dinners out).  But it's preposterous that [b]I pay more in taxes as a percentage than my boss who earns about $2 million a year[/b].  Tired of the "job creators" excuse, too.  I'm a capital creator - a worker bee - and my work is what makes my company money.  [/quote]

You don't, I promise.  You can't compare a millionaire's [i]effective tax rate[/i], like the Mitt Romney 13% figure that keeps getting tossed around, to your own [i]top marginal tax rate[/i] (thanks to the PP for explaining marginal rates).

"The liberal Tax Policy Center reports that 91.4 percent of individual taxpayers with adjusted gross incomes (AGI) between $50,000 and $100,000 pay less than 15 percent in taxes. And 43.9 percent of the $50,000-$100,000 AGI taxpayers pay an effective rate between 5 and 9.99 percent, while 4.6 percent of this group pay no federal income tax at all."  http://townhall.com/columnists/larryelder/2012/09/27/hey_media_a_75k_mechanic_pays_a_lower_tax_rate_than_romney/page/full/

Also, that 15% rate on investment income so many are complaining about?  That's because that income was *already* taxed, at the corporate level.  The combined total [i]effective [/i]tax rate on investments is usually equal to or higher than the top [i]marginal[/i] tax rate.

"Based on a 25% [corporate] tax rate, for every $133 a corporation earned, it had to first pay $33 in federal income taxes before it could distribute $100 in dividends.  Next, on every $100 of dividend income received, the Romneys paid an additional $15 in taxes.  The combined tax of $48 totals out to a 36% rate on dividend income ($48/$133), which approximates the top personal income rate imposed on interest income." http://www.forbes.com/sites/charleskadlec/2012/08/20/mitt-romney-paid-30-not-13-in-federal-income-taxes/[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics