Quoted:
You thought wrong. Long ago, it was decided that it wasn't "fair" for "poor" people to pay federal income tax. In fact, most of them RECEIVE A CHECK, a "tax return" on taxes that they didn't even pay. Bush's new plan failed to INCREASE the amount of this check, which was branded as being UNFAIR, and a bill just passed to fix this little problem.
Income tax is a tiered system. If you make less than $26,000, you don't pay anything. The more you make, the bigger percentage you pay, until the top tier (the "rich") pay about 50% of their income as federal income tax.
Great system, right?
-Troy
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In theory it's a tiered system, but the richer you get, the more clever tax shelters, deductions and strategies are available to you. I know a number of people who make over 200K and pay virtually no taxes - none of them pay more than 10%. One of them pays close to zero - and he gets audited by the IRS every year. They have never nailed him on anything, and he's still doing it. And 200K a year is not really "rich" in the scheme of things - once you get into the really big money, the sky is the limit on the tricks that highly paid tax accountants can figure out.
NOBODY among the really wealthy in the US is paying anywhere close to 50%. That might be their "theoretical" [b]marginal[/b] rate, but it is not what they end up paying in practice. Even if the marginal rate was 50% for somebody, their overall tax burden wouldn't be anyway near 50%, but much lower.
You need to distinguish between overall tax burden and "marginal" tax. If someone is in a 39% tax bracket (btw - isn't that the highest bracket?) they're NOT paying 39% of their taxable income, they're paying the same rates as poorer people up to a certain amount, and then the higher rate on any income above that amount.
Note the key here is "taxable" amount. Some guy making millions might have a really high "tax rate", but because of all kinds of clever deductions and exemptions, he's only paying that really high rete on a small portion of his actual income.
Anyway, I never pay much attention to tax stuff, because I'm not poor enough for any of the freebies that the poor get from Democrats, and I'm not rich enough to get any of the cool benefits that the rich get from the Republicans.