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To: Original Mad Dog who wrote (2311)10/7/2002 4:31:35 PM
From: Poet  Respond to of 7689
 
That was a really good, clear post.



To: Original Mad Dog who wrote (2311)10/7/2002 6:26:46 PM
From: TimF  Read Replies (1) | Respond to of 7689
 
Yes social security and sales taxes can hit the middle class harder then the rich but most places have lower sales taxes then Chicago (where I am they are about half of that), most people who make $40k a year do have tax deductions and many don't spend all of their money or at least don't spend it on spending that is subject to sales tax. I don't make a whole lot more then $40k my self but I have a house (mortgage interest deduction), and I max out my 401K (no sales tax or income tax for now, sure I'll spend a lot of it decades from now but so will the rich person and you didn't add sales tax for future spending of money his is saving now). People who make even less and have kids get the earned income tax credit. Property taxes on the homes of the wealthy are often far more then the $3k in your example

His federal income taxes if you assume 30K in deductions (for mortgage interest, state income taxes, and property taxes)

I don't think you get a break for state income taxes or property taxes any more.

The overall point is that the combined effects of the patchwork of taxes we have in the U.S. is usually not anti-affluent. It often results in something that is pretty close to a flat tax, but without the benefits of simplicity.

I agree it doesn't target the rich as much as it seems but a lot of people pay no tax or even effectivly pay a negative tax. Also moving from your middle class to your affluent examples I think the affluent person will pay a larger percentage just not as much larger as his larger income tax rate would make it seem.

Tim



To: Original Mad Dog who wrote (2311)10/7/2002 8:41:39 PM
From: mph  Read Replies (1) | Respond to of 7689
 
I'd have to disagree with you on some points.

For example, the addition of $1000 for the "pass through"
on landlord's property taxes. If you're going to add that,
you need to add a myriad of other "add ons" for each
hypothetical taxpayer, e.g., the property taxes passed
through to shops at the mall, which in turn tack them on to
the cost of goods sold, the myriad additions to property
taxes paid by property owners, in addition to the assessed
amount (in California, there is always another bond issue,
which raises the ante considerably), gasoline taxes, etc.

As you do that, the gap widens.

Besides, based on anecdotal evidence <g> the alleged
near rich pay way more in taxes......both in dollars and in
percentage.

There are self employment taxes, e.g.