Question the Rich in America?

Question

I constantly heah on Y/A that Bush caters to the Rich only. Can someone tell me what that means, and where I find that in the IRS code, or what specific deductions you are talking about?
No links to goofy web site. I am talking about a guy making say $1,000,000 a year. Is it that he gets tax breaks the rest of us don't? Or is it that some are asking for a piece of his/her success?

Meg. Please describe to me how 63% of their income comes from what I assume you mean to be Long Term Capital gains? You don't give any examples. And remember to ever be taxed as a long term gain, the money was at risk, and the item bought with after tax dollars. Your gonna have to do a little better.
To the rich must pay guy. So anyone who makes less than you, should get more of YOUR paycheck. KFK said "Rich is defined as anyone who makes a dollar more than you do". JFK also provided the largest cut fot the rich in history, lowering tha max tax bracket from 70% to below 50%. So if someone is more successful than you they "Owe you"?

I think you just defined Socialism.

Meg, all I did was use the IRS Tax table. These "Deductions" you speak of are very real. Provided the money is put into circulation and at risk. In any situation, in order to get a $! dreduction in tax, that person mt spend at least $3, (assuming a tax rate of 33%). And because any asset qualifting for a Capital gain, must first be bought with after tax dollars. So, monry used to purchase stock for example, was taxed first as income, The Corporation was taxed, the Dividend received by the shareholder was taxed, now to sell the asset, and the gain, money put back into circulation is taxed. That's like saying we should take the home Mortgage deduction away from the middle class, because the poor don't own homes and therefor can't take a deduction.
My whole point is this. Do we want more Government in our lives or less. Can't have it both ways. Perhaps we should do a better job with where our tax dollars go, think we waste on Military, Welfare fraud? Ect. You are very smart, fun topic.

Answer 1

Taxes are not the same on all types of income. Most people get their income from wages and interest on savings, which are taxed at the income tax rates. People earning over seven million dollars a year get only 37% of their income from these sources, The rest of their income is taxed at a maximum of 15%, and there are efforts to lower this rate even more. It isn't just Bush, the rich have influence it both parties.
http://www.visualizingeconomics.com/2007/05/06/sources-of-income-for-top-001-percent/

Reply: Your question was what people meant and what breaks the rich got. I answered your question and provided data source. If you want to defend the system, and many economist do, you should defend the reality of the numbers, and not deny the fact that labor is taxed more heavily that capital and the rich have the capital. The people who pay the highest percentage of their income in taxes are those who earn several hundred thousand a year, not the very rich.

Answer 2

Try a google search "US Tax rich".

There are many deductions and methods of reducing the taxes owed, but you have to have the knowledge or hire someone who knows what deductions to claim. There are lawyers and accountants that make their entire living from knowing the tax code.

Estate taxes are taxes on the assets of someone who has died. It only applies to assets above 2 million dollars(the number is changing up). The heirs will inherit what is left after the taxes are paid. There are ways to avoid a lot of this tax through knowledgeable tax planning. Republicans would like to abolish this tax and have all wealth pass untaxed to the heirs. Democrats would raise the qualifying number but do not want to abolish the tax.

Income tax rates go up as your taxable income goes up. It ranges from about 15% up to 35%. It is called a progressive tax because the tax rate increases with the income.

There is an additional 7.6% FICA tax on all income from work for Social Security and Medicare and Medicaid. The employer matches that 7.6%. If you are self employed you pay both sides for a total of about 15.2% for these. Add this to a 35% tax rate and you could be paying 50% on federal taxes. But the FICA taxes only apply to about the first $100K of earned income. If you make more income than $100k you max out and don’t pay anymore on this tax. (until next year)

Capital gains taxes and dividend taxes are taxes on returns from investments. Both are now taxed at a 15% rate. FICA taxes do not apply here. Notice that income from investments that mostly goes to wealthy people is taxed at a rate equivalent to the lowest income tax rate of 15% while income earned from work is taxed as high as 35%. The Republicans tend to want the capital gains and dividend taxes lower than the Democrats. These are where most of the Bush tax cuts went.

There are many ways for politicians to favor the wealthy with government policy other than taxes. Corporations use their financial power to lobby the government and donate to political campaign funds as a way of influencing government policy in their favor. People with less wealth have less influence on the greediest politicians.

Answer 3

the tax cuts were a percentage cut
the more you paid the more your cut will be
the rich pay the greatest amount of taxes and therefore get the biggest tax breaks

Answer 4

'MEG' HAS THE FLOOR - FOREVER !!

THE TAX SITUATION IS GRAVE.

THE RICH SHOULD PAY MORE THAN THEY DO BECAUSE THEY CAN AFFORD IT - PERIOD.

THE FUNDS CAN BE USED TO HELP PEOPLE WHO REALLY NEED THE HELP, INSTEAD OF JUST BUYING ANOTHER MEMBERSHIP OR TEN TO EXCLUSIVE CLUBS AND WHATNOT.