Happy Tax Day, and Why the Top 1% Pay a Much Lower Tax Rate Than You

[Tom Joad]

http://www.commondreams.org/view/2014/04/15-9

And of course this means they have more money to "invest" in campaign contributions so that they can get even more tax breaks.

Many millionaires pay a lower federal tax rate than many middle-class Americans.

Some don’t pay any federal taxes at all. That’s because they‘re allowed to deduct from their taxable income such things as large interest payments on mortgages for huge homes, also the costs of business entertainment and conferences (aka vacations at golf resorts), and gold plated health care plans.

Some also take advantage of tax loopholes that let them park some of their earnings in offshore tax havens like the Bahamas or the Netherlands Antilles.

And other loopholes that allow them to treat some income as capital gains – subject to a much lower tax rate than ordinary income. If you happen to be a hedge-fund or private-equity manager, there’s a capital gains loophole designed especially for you.

Consider the Social Security payroll tax and the situation is even more lopsided. That tax applies to every dollar of income up to a cap — which this year is $117,000. Anything earned above the cap is not subject to Social Security taxes at all – meaning anyone with a high income pays a much smaller percentage of it in Social Security taxes than most people do.

continued

[finnbow]

And the GOP wants to make damn sure this continues. They know full well that these folks pay the freight for their party.

[4-2-7]

Lets see if I earned two million and I only had to pay 10% in taxes.

And Tom had to pay 10% of his earning. Who do you think would be contributing more to society.

What happen to equality?

[MikeG22]

Finn who pays the freight for the left? You don't think this goes both ways?

Bush created many of these loopholes and tax breaks and they have been continued right through Obama.

[JJIII]

Again...

www.fairtax.org

[merrylander]

Originally Posted by MikeG22

Finn who pays the freight for the left? You don't think this goes both ways?

Bush created many of these loopholes and tax breaks and they have been continued right through Obama.

Only because he was foolish enough to try bi-partisanship with the fucking GOP and got rolled.

[finnbow]

Originally Posted by MikeG22

Finn who pays the freight for the left? You don't think this goes both ways?

Bush created many of these loopholes and tax breaks and they have been continued right through Obama.

Actually, there was a considerable difference in the demographic makeup of Obama and Romney contributors.

In raising money from those giving less than $200, Obama is a major league slugger while Romney is still waiting to be called up from the minor leagues. And that has made an enormous difference to the campaigns' bottom lines.

Small-donor contributions make up nearly all of the Obama campaign's fundraising lead over the Romney campaign. Obama for America, the official campaign committee, has raised $157 million more than Romney for President through the end of August. Remove the small donors, and that lead shrinks to only $14.7 million.

...Obama has pulled in $189 million from small donors, while Romney has received a comparatively tiny $46.7 million.

http://www.huffingtonpost.com/2012/0...n_1917521.html

[whell]

Originally Posted by MikeG22

Finn who pays the freight for the left? You don't think this goes both ways?

Bush created many of these loopholes and tax breaks and they have been continued right through Obama.

It doesn't matter. The myopic focus on the perceived foibles of Repubs blinds many here to the fact that the elected class, including the millionaires in the White House with their effective tax rate of 18 % 20% respectively over the last 2 years, benefit mightily from the tax rules that they've enacted.

[finnbow]

Originally Posted by whell

It doesn't matter. The myopic focus on the perceived foibles of Repubs blinds many here to the fact that the elected class, including the millionaires in the White House with their effective tax rate of 18 % 20% respectively over the last 2 years, benefit mightily from the tax rules that they've enacted.

Yet it is the GOP who wants to retain all the deductions that advantage rich folks. Why else would the 1% support knuckledragging fools like Cruz, Bachmann, Gohmert et al?

[noonereal]

Originally Posted by JJIII

Again...

www.fairtax.org

nad why not a fair "progressive" tax?

and how about FICA? Would you eliminate the cap?

When I was working I loved the cap, loved it. Between the cap and all the loopholes in withholding I pretty much knew my tax bill every year before New Years dinner was over.