Quote:
Originally Posted by Bavarian
People keep some on purpose, confusing marginal and total income tax rate. The 28% tax rate is only on the portion of income above a fixed amount. Some income is taxfree, then a portion at a higher rate, and so forth.
People don't pay the 28% on all their income just the portion at the high bracket. Their actual tax rate is much lower, because that compares the tax paid/AGI. It is double speak..
Also, a smokescreen is saying that the poor, even though they pay no income taxes pay other taxes. Apples and Oranges. Compare the same tax. We are in danger as a Nation when more than 50% pay no income tax and will therefore vote for tax increases on the minority..
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Love it when someone who knows about this stuff, especially the financial aspect, makes a post.
I believe it was in 2009 when the Committee on Joint Taxation said that 30% of households actually MADE MONEY on the tax system..
.MADE MONEY !!
This is because the US uses the tax code to actually distribute funds, with credits, etc.
I think, and THINK is the operative word, that we need wholesale tax reform and why we have not been addressing it for years is beyond me.
Please come back on your opinion on this.
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And the Buffet rule does absolutey zero to attack the problem. It is a political ploy.....it does not even address any EARNED INCOME at all...CEO'S pay is not involved..sports stars, movie stars...not touched....ONLY the investors who mainly invest in the bonds that help cities, etc. It will not touch any financial problem we have and should it ever pass, AND the President KNOWS it will not yet he travels talking about, the market will suffer as those involved will simply move their funds. Economists on both sides of the aisle agree that this is a foolish attempt at politics.