Here is a scenario, tell me if this is considered a "tax cut for the rich":
Joe and Mike are both widgetiers. they are widget experts, who make the same hourly wage.
Joe likes to work about 25-30 hours a week. He likes the free time he has left to go fishing, camping, and various activities. At the end of the year, Joe's income adds up to be 30,000 dollars before taxes.
Mike likes to work 10-12 hour days, and works the weekends whenever possible to collect overtime. He rarely does anything other than work. He averages about 80-85 hours a week. Mikes income at the end of the year (due to overtime wages) is about 85,000 before taxes.
Tax time rolls around.
In year 2010 Joe paid 3,000 dollars in taxes. (This comes to about 10 percent of his income
In year 2010 Mike paid25,000 dollars in taxes, since he is in a higher tax bracket. (this comes to about 30 percent of his income)
Now a new law only makes mike pay 20,000 dollars (around 23 percent of his income)
2006-12-14
06:19:04
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11 answers
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asked by
Anonymous