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Non-Tech : Who Really Pays Taxes? -- Ignore unavailable to you. Want to Upgrade?

To: c.horn who wrote (259)	8/15/2000 4:51:42 PM
From: ztect	Read Replies (1) \| Respond to of 666

Come on answer the questions that give or don't give a basis to your "analysis". The same spin that Dole said in '96 without noting the consolidation of wealth due to tax policies increased the percent of taxes paid because the percent of wealth increased. algora.com "..The top 5 percent now have more than 60 percent of all household wealth...." (1998) Thus an Example: Mr. TopX made $150,000 in 1980 and in theory paid 50% or $75,000 in federal income tax. In reality after deductions the percent and amounts were less. Don't remember exactly what the SS cap was. think it was around 45,000 at approx3.5% So only approx. $45 thous of the $150 thous or 30% was subject to the 3.5% SS tax. Now Mr. TopX made $350,000 in 2000 and in theory paid 39.6% or $133,000 in federal income tax. In reality after deductions the percent and amounts were MUCH much less. Deferrred income was taxed at 20% and then there were all the itemized deductions. He paid more, but much less as percent of income since his income also grew much greater than the average worker. Now the SS cap is at $65,000 thous so only 65,000 of the 350,000 or 18.6% is subject to SS tax at a rate of 7%. ========================================== Compare this to Mr Avg Income. In 1980 Mr Avg made 24,000 and with the standard deduction...less to itemized paid a rate of 28% with all 100% of his income subject to 3.5% SS tax In 2000 Mr. Avg made 32,000 (his income and assets grew much much slower than the op 1%) and still had to pay approx. the same rate again with all his income subject to the 7% SS tax and fewer deductions to itemize. So yes he paid less in gross taxes, but his income grew less and after paying for the necessities he had little to no disposable income to make capital gains from. Mr. Avg. real taxes were much closer to the bracketed amounts Now who's Mr. Avg? Cops, teachers, constructions workers, social workers, store managers.....all types of people who work hard EVERY day many of whom have high amounts of education. So figures lie , and liars figure........... I'd almost prefer to see a flat tax then see the thick systems of deductions in place where actual percent of income paid by the top 1% is on average less than 7% of gross income, especially with tax deferable income ie. options being taxed at a real rate of 20% rather than the bracketed 38% rate. Again also note that the social security tax only applies to the first $65 thous or so of income, so that if you make 32 thous all your income is taxed whereas if you make $6.5 mil only 65 thous of your income is taxed. The system shouldn't be structured to increase inequality...which it is..... Then again, don't expect any real discussions on threads you start. Just a lot of labeling. It isn't about "liberals" or "conservatives"... It is about tax fairness. Do away with many of the personal and corporate deductions, and work arounds so the amounts paid are closer to the actual percentages in the brackets.. z