I can't remember the last time I heard a rich guy complaining he couldn't go to the doc because he had to buy groceries... Oh yea, cause he's rich.

Or maybe we are just biased because we are PO!??

Oh, my God, you guys.

Look up the tax bracket. The wealthy are paying more, not only because they make more, but also because the percentage they pay is more for the more they make.

For instance:

The 2008 tax bracket for a single person making between 0-$8,025 is 10%. That means that the person making $8,025 per year is paying (annually) $803 (always rounded up) in taxes. If a person making $360,000 had the same tax rate, they would be paying $36,000 (annually). This is not the case, because the person making $360,000 is not subject to only 10% tax, they are subject to 35% tax. This means that the person making $360,000 per year is paying $126,000 in annual taxes.

Not only is this more than a third of their income that they worked very hard to get, they don't get tax refunds. So, the person who is making $8,025 pays no taxes (and get's a refund) and the person who pays $126,000 in taxes is paying for the Earned Income Credit of the person only making $8,025 per year.

Tina

But...what about the loopholes?

THANK YOU!!

Lindyy

a person who makes 32,551 pays a 25% tax look it up. arent those poor folks lucky?

The truth if you examine the 2008 tax tables closely is that the top tax tier is 35% for only that portion of net income that exceeds $357,700. This 35% figure also assumes that the taxpayer is not using any of the hundreds of loopholes that are available to shield this income. It also is based on net income and not gross revenues. Remember that as much as twenty times your net income can be hidden as expenses on gross revenues yet still provide fantastic benefits and cashflow to the taxpayer in the highest tax bracket. Also the well-to-do in this top tier hold the great bulk of capital assets in the nation and are currently taxed at 15% however there are a great many tax shields to reduce this and prior capital losses can also be applied against gains.

Now compare the previous well-to-do to the millions who have an adjusted gross income of at least $65,100 and are currently in the 28% incremental tax bracket with no major tax loopholes save mortgage interest deductions.

Now does this sound fair to you?
http://www.stoptheaclu.com/archives/2008/11/03/a-taxation-primer

OK, the only way that you would be taxed on a Net figure is if you held a Sole Proprietorship and you had justifiable expenses that you could account for if audited. This means that you have a self-employment tax, which is basically your FICA and if you make enough, you will then pay into income taxes. Many sole-proprietors actually get a refund.

The people who make hundreds of thousands of dollars as a high-ranking officer in a Corporation are taxed on their GROSS income, not their NET.

Having been an accountant and doing taxes for individuals and companies of every size, I have learned quite a bit. One of the things I learned is that the more you make, the less the ratio of income verses taxes you actually take home.

What is the incentive, then, for an individual to make more money? If the people who work their butts off year after year, day and night, to better themselves then have to distribute to the people who sat at home every night after work watching their favorite TV shows, why even try anymore?

Tina

I think the word gets down to "SOCIALISM".....NOT a good thing...

Lindyy

The next step is to become a communist country.

McCain had a plan to redistribute wealth too.

But again, why confuse some posters with facts.

I think his involved more tax cuts for the rich. I guess he figured that it would eventually make it's way down to the middle and lower classes.

Doesn't seem to have worked out very well so far. Not sure how he figured doing more of it would be a good idea.

it's about time someone on here made sense...

Finally someone who has a level-headed mindset.

I can't forget Lindyy, too. She understands as well.

Tina welcome...I'm not sure you've noticed yet...but...on here Liberals kind of dominate the board...there's very few conservatives...I try to have fun...and at the same time...stay grounded in my beliefs...what you were trying to say on this thread...will usually go in one ear and out the other...I've already copy/pasted IRS and US Treasury stats...to no avail...

Thanks for the head's up on the ignorance.

opps !...that's Tia...

I don't quite follow what you mean by that. I was not bashing YOU, I just think if someone is going to say that the wealth should be shared from a person willing to work their A** off to earn good money with the person laying on the couch eating potato chips and watching soap operas all day, I find that only an ignorant person would call that fair.

Tina

UMMM, THEY ALREADY DO!!! Much higher tax percentage, the difference of 35% to 10%.

my opps comment is because I called you Tina...silly you...lol...you and I are on the same page...I agree with you...producers giving money to non producers...someone who did not earn it...is apalling...on this board...the rich are looked down upon...if you read some of the stuff that's posted...on here in regards to taxes and money...it makes you kind of scratch you head...