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Showing posts with label fair share of taxes. Show all posts
Showing posts with label fair share of taxes. Show all posts

Thursday, September 22, 2011

Are The Rich Taxed Less Than Secretaries?

From the article FACT CHECK: Are rich taxed less than secretaries? By Stephen Ohlemacher of the Associated Press,....although the article could have been entitled Administration Class Warfare Strategy

WASHINGTON (AP) — President Barack Obama makes it sound as if there are millionaires all over America paying taxes at lower rates than their secretaries. "Middle-class families shouldn't pay higher taxes than millionaires and billionaires," Obama said Monday. "That's pretty straightforward. It's hard to argue against that."

The data tell a different story. On average, the wealthiest people in America pay a lot more taxes than the middle class or the poor, according to private and government data. They pay at a higher rate, and as a group, they contribute a much larger share of the overall taxes collected by the federal government.

There may be individual millionaires who pay taxes at rates lower than middle-income workers. In 2009, 1,470 households filed tax returns with incomes above $1 million yet paid no federal income tax, according to the Internal Revenue Service. That, however, was less than 1 percent of the nearly 237,000 returns with incomes above $1 million.

In his White House address Monday, Obama called on Congress to increase taxes by $1.5 trillion as part of a 10-year deficit reduction package totaling more than $3 trillion. He proposed that Congress overhaul the tax code and impose what he called the "Buffett rule," named for billionaire investor Warren Buffett.

The rule says, "People making more than $1 million a year should not pay a smaller share of their income in taxes than middle-class families pay."

Cowboy's comments: You already said that. And the reason you are saying it many times is the age old rule that if you make up your own facts and tell it enough, it becomes everyone's facts. Well, here's the real truth Mr President,.... you are entitled to your own opinions, not your own facts. In the circles I run in, it's known as lying.

"Warren Buffett's secretary shouldn't pay a higher tax rate than Warren Buffett. There is no justification for it," Obama said. "It is wrong that in the United States of America, a teacher or a nurse or a construction worker who earns $50,000 should pay higher tax rates than somebody pulling in $50 million."

Cowboy's comments: My God, how can he just make this crap up?!?!?

Buffett wrote in a recent piece for The New York Times that the tax rate he paid last year was lower than that paid by any of the other 20 people in his office.

Cowboy's comments: There may be some truth in some these rate claims. Buffett can employ the best accountants and tax lawyers; he can hide (legally of course) tons of money in various tax free and protected investments and funds. But there is no doubt that he paid more money in taxes than probably all of his staff combined. And there is the definition of taxes and tax rates. Are we talking about baseline tax rates or the rate on taxable income? Are we talking about wages or investment income?

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.

Households making between $50,000 and $75,000 will pay 15 percent of their income in federal taxes. Lower-income households will pay less. For example, households making between $40,000 and $50,000 will pay an average of 12.5 percent of their income in federal taxes. Households making between $20,000 and $30,000 will pay 5.7 percent.

The latest IRS figures are a few years older — and limited to federal income taxes — but show much the same thing. In 2009, taxpayers who made $1 million or more paid on average 24.4 percent of their income in federal income taxes, according to the IRS. Those making $100,000 to $125,000 paid on average 9.9 percent in federal income taxes. Those making $50,000 to $60,000 paid an average of 6.3 percent.

Cowboy's comments: As these different rates are fair even though the constitution never said anything about tax payers, or tax payers paying what they could afford.

Obama's claim hinges on the fact that, for high-income families and individuals, investment income is often taxed at a lower rate than wages. The top tax rate for dividends and capital gains is 15 percent. The top marginal tax rate for wages is 35 percent, though that is reserved for taxable income above $379,150.

With tax rates that high, why do so many people pay at lower rates? Because the tax code is riddled with more than $1 trillion in deductions, exemptions and credits, and they benefit people at every income level, according to data from the nonpartisan Joint Committee on Taxation, Congress' official scorekeeper on revenue issues.

The Tax Policy Center estimates that 46 percent of households, mostly low- and medium-income households, will pay no federal income taxes this year. Most, however, will pay other taxes, including Social Security payroll taxes.

"People who are doing quite well and worry about low-income people not paying any taxes bemoan the fact that they get so many tax breaks that they are zeroed out," said Roberton Williams, a senior fellow at the Tax Policy Center. "People at the bottom of the distribution say, but all of those rich guys are getting bigger tax breaks than we're getting, which is also the case."

Treasury Secretary Timothy Geithner was pressed at a White House briefing on the number of millionaires who pay taxes at a lower rate than middle-income families. He demurred, saying that people who make most of their money in wages pay taxes at a higher rate, while those who get most of their income from investments pay at lower rates.

"So it really depends on what is your profession, where's the source of your income, what's the specific circumstances you face, and the averages won't really capture that," Geithner said.

Cowboy's comments: Exactly Mr "Turbo Tax" Geithner. So tell your boss to can the class warfare talk. Or at least answer this question: "Just how much of my money is the Federal government entitled to?"

Thursday, August 4, 2011

The Rich and Their Fair Share

With the debate and political deals on how this government is going to handle shrinking revenues and expanded government spending, especially concerning the Federal debt which is not just an economic issue but a national security issue, I am sick and tired of all these butt clowns crying for the “rich” to pay “their fair share”.

Okay you stupid buffoons, what exactly is a “fair share” for the “rich”? And just how are you defining the “rich”? And I want straight numbers, not the BS which President Obama uses to start class warfare, and you have all heard him spew sound bites such as “millionaires and billionaires should pay their fair share”, “the hedge fund manager should not pay less taxes than his secretary”, and so on.

First of all, how dare anyone tell someone else that they need to pay more that others because they had the skills and initiative to earn more? I think we learned in school and in life that fair is the same or proportional,....not punitive.

Second of all, the tax facts from the last reporting year are this:

The top .1 %, not the top 1%, but the top point one percent pay over 18% of all federal income taxes.

The top 1 percent pay over 38% of all federal income taxes.

The top 5% pay over 58% of all income taxes.

The top 50% of all tax payers pay a whopping 97% of all federal income taxes.

And, the bottom 50% of wage earners pay less than 3% of all income taxes.

Not counting the fact that the higher wage earners also pay more tax, mainly because they buy more crap, the tax burden is over whelmingly slanted against the people who earn money,…….. and lost in this debate is the fact that the higher wage earners are the people expanding their businesses, hiring more people, paying more employer federal tax contributions as well as a large tax burden for SSI, Worksmens Comp and now the Obamanation National Healthcare Mandate.

So I ask again, just who is the rich and what is their “fair share”?