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View Diary: Truth in Taxation (9 comments)

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  •  I think you have an interesting diary (1+ / 0-)
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    in here somewhere, but I think you need a little more polish.  

    It's hard to read walls of text - breaking things up into paragraphs really helps make things easier to read.  

    I'd also look at your math again.  FICA taxes (unless you're self-employed) are 7.65%, not 15.3%.  And a couple making $160k a year isn't paying a 33% top marginal rate (it's 28%).  And that 28% only applies on like $20k of their income.  So they're paying far less than a 45% rate all told.  These facts don't make your bottom line WRONG, but they do detract from credibility.  These are small changes and I think you have good stuff here.

    •  Thanks misslegal beagle (0+ / 0-)

      Thanks for the feedback. Yeah, when I try ti break things up more I get complaints that they are too long, and when I compress them I get complaints that they are too dense. basically I just run off at the pen too much, I guess. But I think the content is worth putting out there, so I persist.

      Economists agree that the employee really bears both sides of the FICA tax. That was the intent of structuring FICA as it was - employers would pay less, because an employee only has X total market value and the employer regards FICA as part of that cost, but by breaking it up the workers are fooled into thinking they only pay half of the tax when really they suffer the whole thing. More dishonest taxation.

      My bad on the marginal rate - I looked at the headline thresholds in section 1 rather than at the form 1040 inflated tables. But the difference between work and speculation remains startling.

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