I just received a document that was published by the company that does my taxes. The effective Federal Income tax rates for 2006 are as follows:
Single Married Jointly Head of house Rate
$1-$7,550 $1-$15,100 $1-$10,750 10%
$7,551-30,650 $15,101-61,300 $10,751-41,050 15%
$30,651-74,200 $61,301-123,700 $41,051-106,000 25%
$74,201-154,800 $123,701-188,450 $106,001-171,650 28%
$154,801-336,550 $188,451-336,550 $171,651-336,550 33%
over $336,550 over $336,550 over $336,550 35%
Before any deductions:
A single making $40,000 pays $4,000 in taxes
A single making $75,000 pays $21,000 in taxes
A single making $336,550 pays $117,793 in taxes
I see so many people on Yahoo saying the rich don't pay enough taxes. Take a look at the numbers I posted and tell my why you think that is fair?
2006-12-13 05:39:34 · 13 answers · asked by Anonymous in Politics & Government ➔ Politics
There's nothing fair about the tax codes in this country or the IRS Investigator's Handbook wouldn't be classified as top secret. I think there's a much fairer way and that's having a straight tax, across the board, with no deductions and no shelters. If George Soros wants to live in the USA, then his money gets taxed no matter where he stashes it.
2006-12-13 05:44:17 · answer #1 · answered by ? 5 · 3⤊ 3⤋
Those are not the effective tax rates. They are the actual tax rates. The Effective Rate is total tax divided by TOTAL income.
However, you have made a more fundamental error than that. Someone earning $336,550 will not pay $117,793 in taxes. Unless AMT applies, every taxpayer pays 10% on their first chunk of income (in your table $15,100 for a married couple filing jointly) and then 15% on the next chunk. So a single person making $75,000 actually pays $15,331.50 in tax and the one earning $336,550 pays $97,653.00.
These figures (like yours) do not account for reliefs and deductions. You know, like the nice bit of tax relief that got passed, phasing out the reduction in itemized deductions at higher incomes. That benefits the high earners whilst middle-income earners are being slowly but surely squeezed by AMT. Congress has yet to address that issue.
If you are going to discuss tax policy, may I suggest that you understand the figures before offering your opinion?
2006-12-13 05:58:49 · answer #2 · answered by skip 6 · 2⤊ 1⤋
If you weighted the tax rate so that everyone in the U.S. paid the same rate on income, it would be in the 20-25% because the rich pay such a high amount of taxes in relation to the amount of tax payers.
Since 75% of the U.S. is under this 20-25% tax rate, there is no incentive for this to pass. How many tax payers do you know would vote to pay higher taxes and gain no more social good?
Furthermore, its hard to tell a single mother making $15,000 per year to pay $3,000 (20%) in taxes when she is hardly making it in the first place.
2006-12-13 05:54:11 · answer #3 · answered by Anonymous · 0⤊ 1⤋
The numbers you present do not apply to the truly rich. Those with genuine wealth have so many tax shelters available to them, it's ridiculous! Dick Cheney for instance made over $1.2 million last year and had and paid about 11% in Federal Tax. Warren Buffet, when working next to his employees for a change, looked at their paychecks came to the realization that he paid a much lower percentage in taxes than an ordinary secretary.
2006-12-13 05:46:02 · answer #4 · answered by boredperv 6 · 5⤊ 0⤋
Well the reason is because even thouh they are supposed to pay that much $$$ there are many loopholes that favor the rich and I'm not talking about what you listed..I'm talking about the people who make millions....I make over 150,000 a year and I pay more in taxes than some people earn in a year.
2006-12-13 05:44:34 · answer #5 · answered by Anonymous · 6⤊ 0⤋
The government of the US is so rich because of these taxes. They are being used to support a war overseas with a country that had nothing to do with 09-11.
Billions are given to countries other than our own.
Who came here with aid when Katrina hit????????
Who came to NY to help??????
Who came to the Pentagon??????
No one from overseas. Just Americans. Maybe some Canadians and Mexicans. That's about it.
We stand alone and your tax dollars afford this country the rights to do so. That is why!
2006-12-13 05:45:47 · answer #6 · answered by jayndee13 4 · 3⤊ 1⤋
The income tax is a scam, was illegally implemented, and should not exist!
This is an excellent explanation of how the U.S. "Federal" Reserve System and income taxation fraud has been perpetrated against American citizens and the Constitution itself:
http://www.devvy.com/notax.html
Wake up people, it's time to stand up and fight back!
2006-12-13 05:46:46 · answer #7 · answered by Anonymous · 1⤊ 3⤋
i own a heating and air conditionig contracting business, do you really think those taxes are high? as an employer, everything you pay in, i match. and that's not even 1/10 of my yearly taxes.
wah,wah,wah
shut up and pay your fricken taxes, junior.
we need more bombs!
2006-12-13 05:44:25 · answer #8 · answered by Anonymous · 2⤊ 1⤋
It's not fair. The republican congress should have passed the fair tax bill. Now we're just plain screwed with the democratic one coming up. Get ready for more tax hikes!
2006-12-13 05:42:44 · answer #9 · answered by Cody P 2 · 2⤊ 4⤋
There are better web sites that will break this down for you.You are misguided you are leaving out all the deductions that people take.
2006-12-13 05:43:20 · answer #10 · answered by dstr 6 · 3⤊ 2⤋