Business Insider: rich people can't buy all the products we need to sell to have a healthy economy

[james&olya 1,121]

And maybe I'll go and earn them somewhere else.

That's what happened in the UK - after (then-British PM) Gordon Brown raised the top tax rate on those making more than £1 million to 50%, nearly two-thirds of British millionaires fled the country to avoid taxes, fewer entrepreneurs came into the country, and the government took in lower tax revenues than it did before the increase.

[james&olya 1,121]

Everybody hates the rich, because they are such tightasses.

Fat asses might be more often literally correct!

[james&olya 1,121]

Don't you ever study history? Unions are a precursor of socialism.

That is the simplistic view. A more realistic view might use the analogy of a pendulum. The best way to prevent that pendulum from swinging far to the left is to not push it far to the right!

[one...two...tree 2,762]

That is the simplistic view. A more realistic view might use the analogy of a pendulum. The best way to prevent that pendulum from swinging far to the left is to not push it far to the right!

Yep. Had FDR not embraced labor unions, he might have galvanized the socialists. Instead, he stole their thunder.

[Mr. Big Dog 10,747]

I'm not arguing for a zero rate, just a fair rate that doesn't have me working through the month of August just to pay my tax bill.

Through the month of August? You work 8 out of 12 months just for the tax man? That means your effective tax rate is 66.67%. Obviously, I do not believe that for minute but if that is true, then you should seriously consider to fire your accountant.

[Teddy B 17,251]

Through the month of August? You work 8 out of 12 months just for the tax man? That means your effective tax rate is 66.67%. Obviously, I do not believe that for minute but if that is true, then you should seriously consider to fire your accountant.

I chuckle when I hear rich people complain about how much taxes they pay. On a percentage of income they pay no where near what a middle class family pays. Flat tax is the only way to go. The divide between upper and middle classes is becoming greater by the day, the only way to fix that is to correct the corrupt tax system.

[mawilson 2,133]

Through the month of August? You work 8 out of 12 months just for the tax man? That means your effective tax rate is 66.67%. Obviously, I do not believe that for minute but if that is true, then you should seriously consider to fire your accountant.

On the last dollar close to 50%. Federal (35%) + state (9%) + local (4%).

On a percentage of income they pay no where near what a middle class family pays.

That's incorrect - the effective federal tax rate for most Americans is about 10 percent - lower than Mitt Romney's (whose effective rate of 13% is pretty damn low.)

[Teddy B 17,251]

On the last dollar close to 50%. Federal (35%) + state (9%) + local (4%).

That's incorrect - the effective federal tax rate for most Americans is about 10 percent - lower than Mitt Romney's (whose effective rate of 13% is pretty damn low.)

I didn 't say "most americans", I said middle class. The average tax rate on middle class households are between 17% and 23% depending on taxable income and deductions. My wife and I paid around 22% last year.

Edited December 5, 2012 by Teddy B

[Teddy B 17,251]

I didn 't say "most americans", I said middle class. The average tax rate on middle class households are between 17% and 23% depending on taxable income and deductions. My wife and I paid around 22% last year.

The numbers I posted above are incorrect. I included both federal and state taxes.

[Mr. Big Dog 10,747]

On the last dollar close to 50%. Federal (35%) + state (9%) + local (4%).

So you don't pay the effective rate you suggested even on the last dollar you earn, let alone on the first dollars. That's what I thought.

[mawilson 2,133]

The numbers I posted above are incorrect. I included both federal and state taxes.

Indeed, they didn't look right. Your effective federal rate shouldn't be more than 12-15%, unless you make > $200k.

State and local taxes tend to be more regressive.

So you don't pay the effective rate you suggested even on the last dollar you earn, let alone on the first dollars. That's what I thought.

I only care about the last dollar. If I take a distribution of X dollars right now, X/2 will go to the government.

[Mr. Big Dog 10,747]

I only care about the last dollar. If I take a distribution of X dollars right now, X/2 will go to the government.

Lucky you not living in the "good ole' days". Then, 0.9 * X would have gone to the feds alone.

[james&olya 1,121]

On the last dollar close to 50%. Federal (35%) + state (9%) + local (4%).

That's incorrect - the effective federal tax rate for most Americans is about 10 percent - lower than Mitt Romney's (whose effective rate of 13% is pretty damn low.)

What is most relevant is a comparison of TOTAL tax rates. When you add in payroll taxes, sales taxes, property taxes and state income taxes the average taxpayer IS paying more than the likes of Mitt Rmoney!

What I will never understand is why a dollar made by capital gains is treated preferentially to a dollar made by actually working. If anything, the dollars made by working should have the lower rates!