I just listened to Peter Schiff on CNBC (via American Thinker) spouting that the majority doesn't have the right to "steal" his money just because he is in the top 2%.
Schiff claims the government is already taking 45% of his total income, and if Obama has his way, they will be taking more than 50%!
To add further insult, Peter asserts that a Serf in Medieval times only had to pay 25%. Poor Peter is paying twice as much as a lowly Serf (cue violin strings).
Just some quick fact checks for Peter. He says that this is based on Federal and State taxes (in Connecticut), plus an additional 3% he will have to pay in Medicare taxes under Obamacare.
Peter must have arrived at this calculation by taking the top Federal tax rate 35% + the top Connecticut rate 6.5%, plus Obama's horrid new 3% Medicare tax, and then rounded it up to 45%.
So let's see here. I went to tax-rates.org and used their Income tax calculator for Connecticut.
Here are my working assumptions:
1) Mr. Schiff is single (fair assumption from his wiki bio.
2) Pete only takes standard deductions on his Federal and State Income Tax Returns (fat chance!)
3) He is the only CEO of an Investment firm (Euro Pacific Capital), who doesn't have investment income. (maybe, he has a lot of losses and was too embarrassed to take them as deductions?)
4) He made $300,000 in total income (this is based on his claim that he is just a lowly two-percenter which is in the range of annual income for this group)
Plugging those assumptions into the tax-rate.org calculator, I am showing that Peter would have to pay $92,118.52 in combined Federal and Connecticut income taxes. This is just under 31% of Peter's total income.
I did not calculate the new Medicare tax which Peter claims adds an additional 3% to his total taxes, but here is some info on it from Obamacarefacts.com:
What Tax Increases Do the ObamaCare Taxes Include for The $200k/$250k Earners?Not seeing how this is going to cost Peter an additional 3% of his total income, especially since his income for Federal tax purposes will be adjusted accordingly.
Starting in 2013, ObamaCare taxes individuals with earnings above $200,000 and married couples making more than $250,000. This tax is an increase to the Medicare part A payroll tax. It's an increase of 2.35%, up from the current 1.45% ( a .9% Medicare payroll tax hike), on adjusted income over the threshold. This group will also pay a 3.8% unearned income tax on interest, dividends, annuities, royalties, rents, and gains on the sale of investments over the threshold.
Taxable income under the $200/$250k threshold is subject to the same benefits and tax cuts as those who make under the threshold.
I would love if Peter Schiff would come forward with the real taxes he pays. I am quite willing to wager that he pays less than a lowly Serf.