Republicans pro-tax...On Middle class

[Darkhawk]

People who are taxed at a higher rate because they have more still have a much higher after-tax income than people who are taxed at a lower rate because they don't have as much. I don't think that's particularly unfair, but I can see how the idea of one person with a high income paying thirty percent and another with a lower income paying five looks very unfair on the surface.

Sales tax here is over 6%.

Federal payroll taxes are 6.2% up to about a $100K income and nothing on higher stuff. Medicare taxes are another percentage and a half point.

The Federal gas tax is 18.4 cents per gallon. The state gas tax here is 23 and a half cents per gallon or so.

Anyone who claims that poorer people don't pay taxes is a liar.


Meanwhile, the long-term capital gains tax rate is between 10% and 20% lower than the income tax rate, meaning that those of us who actually work for a living - disproportionately poorer people - pay more in tax on our income.

[Owl]

Sales tax here is over 6%.

Federal payroll taxes are 6.2% up to about a $100K income and nothing on higher stuff. Medicare taxes are another percentage and a half point.

.

I'm agreeing with you but a small correction - Social Security taxes are the 6.2%. Federal income taxes start at 0 and work up through 10% (of the amount over your exemptions and standard deduction) and 15% and above.

[Darkhawk]

Federal income taxes start at 0 and work up through 10% (of the amount over your exemptions and standard deduction) and 15% and above.

Yah, I was going for the taxes other than the ones that one fills out the 1040 for, since all the "Some people don't pay any taxes!" lies are based around the idea that the 1040 covers the only taxes that count.

[Owl]

Yah, I was going for the taxes other than the ones that one fills out the 1040 for, since all the "Some people don't pay any taxes!" lies are based around the idea that the 1040 covers the only taxes that count.

I hear that! Everyone pays social security and medicare starting with the first dollar they make. It's only income tax that grows as your income grows. But try to explain that to a conservative!

[Skyth]

Meanwhile, the long-term capital gains tax rate is between 10% and 20% lower than the income tax rate, meaning that those of us who actually work for a living - disproportionately poorer people - pay more in tax on our income.

Not to mention that there are no payroll taxes on investment income.

[Owl]

Not to mention that there are no payroll taxes on investment income.

Exactly!

[mandrina]

Not to mention that there are no payroll taxes on investment income.

On the other hand, my grandmother lives on 'investment income' and social security. BUt if you add it together and it was earned income, she wouldn't pay income taxes on any of it. I would actually go for lumping all income together and paying graduated tax on it, so she wouldn't pay taxes and someone with over a million in investment income would pay the highest level taxes.

[veggiewolf]

f
...
This year, households making more than $1 million will pay an average of 29.1 percent of their income in federal taxes, including income taxes and payroll taxes, according to the Tax Policy Center, a Washington think tank.
...

And this is where I note I make considerably less than $1 million/year...and my household income is less than the 250k number that gets tossed around...but that 29.1 percent tax rate was my rate last year.

[sailor]

And this is where I note I make considerably less than $1 million/year...and my household income is less than the 250k number that gets tossed around...but that 29.1 percent tax rate was my rate last year.

That does not add up. Using married filing joint, standard deduction, 2 personal exemptions (ie just you and spouse) a gross income of $350,000 gives 28% bracket and effective Federal income tax rate of 24.89%. If any of that was qualified dividends or long term cap gains you'd earn more and pay less.

[mandrina]

And this is where I note I make considerably less than $1 million/year...and my household income is less than the 250k number that gets tossed around...but that 29.1 percent tax rate was my rate last year.

are you including the payroll and ss taxes in that? As in you take home 70.9 % of your income?