So what if the rich pay 20% of all federal income taxes- we all pay the same or more, and then we have to deal with state and sales tax.
Take someone making 100k a year:
6.2% FICA on your end- millions will die before they collect one penny on this.
6.2 on your bosses end- it could be argued that if the employer did not have to pay this tax, the employee would earn more in gross income.
Two to 4 grand medical coverage- this is a tax- every other industrialized nation pays for universal medical through taxation.
IRA/ 401k- social security won’t cut it, and pensions no longer exist, so another 5- to 15k paid here to make sure we won’t be destitute.
20% federal tax.
4% state tax.
Sales tax- another 5 to 8 percent on 20k of goods and services.
Excise taxes gas etc etc
What’s let over is there to pay the rent, the car and for food. We might have a few bucks left for a ball game or a trip to the beach. Rmoney has enough left over to build that car elevator and buy that private island.
Now don’t tell me the rich don’t have loopholes that we don’t.
Otherwise how the hell did rmoney pay effective tax rate of 14.1 percent?
In the civilized world, medical coverage is most certainly a tax that must be paid.
All other western nations deduct medical coverage costs from paychecks. We decided to go and do it in a roundabout way. We pay a for profit insurer for the "privilege" of coverage but it is no different than paying FICA tax- It must be paid and it is regressive.
As the sequester and austerity kicks in federal deficits begin to drop, much of that money was going to states to pay for security, roads, and education, the states need that revenue, so they raise fees, and sales tax, and income tax to offset that lost federal revenue, again this is a regressive, and most times flat tax.
when the feds cut something, the states charge more tax to replace that income, in effect the states are helping the feds cut the deficit, but its done in a regressive way.
total tax burden means total tax burden, you can't just look at federal income tax, effective tax rates for the least of us are killing all of us.
The right wing really needs to understand this- so i will repeat it and type slowly.
effective tax rates on the poor and middle class is higher than that for the rich. Do the math on your own tax returns to get a feel for what your total effective tax rate is.
Why do the GOPers always forget that FICA taxes exist, Add in Medical coverage, sales and state tax, etc etc. And before you know it the middle class has lost more than 50% right off the top.
When the feds cut federal spending on the states- the states need to increase taxes- sales, income etc, they also must raise fees like toll roads all over texas.
As the feds cut, states increase taxes- the total effective tax rate on the middle stays the same of increases.
rmoney should pay the same as most in the middle class, but he doesn't. The FICA tax alone is one regressive flat tax that the middle and the poor must bear every paycheck. this "capital gains drives investment dollars elsewhere" pie in the sky crap as an excuse will not fly on this site.