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?"

T-Shirt of the Month

The electronic media shorthand of "OMG" carries a new meaning.

Who's the Infidel?

This was sent to me through e-mail from an old Cowboy buddy of mine and he claims it is a true story about Rick Mathes is a well-known leader in prison ministry.

The man who walks with God always gets to his destination. If you have a pulse you have a purpose.

The Muslim religion is the fastest growing religion per capita in the United States, especially in the minority races!! I attended my annual training session that's required or maintaining my state prison security clearance. During the training session there was a presentation by three speakers representing the Roman Catholic, Protestant and Muslim faiths, who each explained their beliefs.

I was particularly interested in what the Islamic had to say. The Muslim gave a great presentation of the Basics of Islam, complete with a video. After the presentations, time was provided for questions and answers.

When it was my turn, I directed my question to the Muslim and asked: 'Please, correct me if I'm wrong, but I understand that most Imams and clerics of Islam have declared a holy jihad [Holy war] against the infidels of the world and, that by killing an infidel, (which is a command to all Muslims) they are assured of a place in heaven. If that's the case, can you give me the definition of an infidel?'

There was no disagreement with my statements and, without hesitation, he replied, 'Non-believers!'

I responded, 'So, let me make sure I have this straight. All followers of Allah have been commanded to kill everyone who is not of your faith so they can have a place in heaven. Is that correct?'

The expression on his face changed from one of authority and command to that of a little boy who had just been caught with his hand in the cookie jar.' He sheepishly replied, 'Yes.' I then stated, 'Well, sir, I have a real problem trying to imagine The Pope commanding all Catholics to kill those of your faith or Dr. Stanley ordering all Protestants to do the same in order to guarantee them a place in heaven!'

The Muslim was speechless.

I continued, 'I also have a problem with being your friend when you and your brother clerics are telling your followers to kill me! Let me ask you a question: Would you rather have your Allah, who tells you to kill me in order for you to go to heaven, or my Jesus who tells me to love you because I am going to heaven, and He wants you to be there with me?'

You could have heard a pin drop as the Imam hung his head in shame.

Needless to say, the organizers and/or promoters of the ‘Diversification' training seminar were not happy with my way of dealing with the Islamic Imam, and exposing the truth about the Muslims' beliefs.

In twenty years there will be enough Muslim voters in the U.S. to elect the President. I think everyone in the U.S. should be required to read this, but with the ACLU, there is no way this will be widely publicized, unless each of us spreads this message,....that Islam, at least the Islam practiced by the vocal majority, is not compatible with America.