Originally Posted by
Darthtang AW
http:///forum/post/3187261
Problem with your post, is the rich guy pays more in medicare, sales, social, due to the fact those taxes are at a set percentage. These taxes the rich guy does not have any write off ability with.
The guy making 8 an hour will pay no state or federal taxes as he will get it all back, while the guy making a butt load of money will be paying out ATLEAST 40% even after deductions and such.
If anything the guy with less money makes out more as he keeps a larger percentage of his money when it is all said and done.
Standard of living is the end all of this debate. If your standard of living is increasing steaqdily....so much so that the poor people are able to live full lives with much more ease does it matter how big the gap is.
Someone explain to me why it is bad if the index margin between the rich and the poor/middle keeps growing. How does this lessen the quality of life for the poor/middle class?
One thing you left out is the rich guy pays more in medicare, sales, social, based on the REPORTED INCOME that he makes. Like Clemson's grandfather. The guy made $3 million, yet only reported earnings of $500,000. So yes he does pay more taxes on the $500 grand than the Burger King guy, but his overall percentage is still less. Take those taxes he paid on $500,000, and divide it by his actual $3 million income. It definitley won't be this original 40% you say he paid.
Trust me, I know all about how this game works. I make way more than Joe Sixpack, and last year my effective tax rate was 14.64%. Isn't the American Tax Code great!!