Originally Posted by persim
Your point is what? Effective tax rate is just a net of all your tax rates. Everyone in this country has the opportunity to invest and have income from those investments, whether its 75% of your total income or 25% of your total income. That income is then taxed at a specific rate that is different from a payroll tax.
Just because 75% of their income happens to come from investments doesn't mean they are paying any less percentage (yes capital gains were lowered so that part of their income was paying less tax but so were everyone elses). They are paying exactly the rate that anyone who invested would pay on that income.
You can not compare effective tax rate to marginal tax rate as this article and many articles like it try to do. A person making 75k who had 75% of his income from investments and 25% from salary would pay a smaller effective tax rate than a person making 75k from salary only. But since they are both deemed middle class no one would argue that this person should pay his "fair share". Why are wealthy people treated differently just because they are wealthy?
Why are wealthy people treated differantly just because they are wealthy? Maybe a republican can answer this, as they are the ones that pass tax laws that overwelmingly favor them. Why should someones investments be taxed at half the rate as someones labor? Let me make a little hypothetical.
Two people, one rich, the other poor. The rich man employs the poor guys at a rate of $15/hr. The rich guy collects $30/hr for the work the poor guy does. After wages, the rich guy makes $15/hr off of the work the poor guy actually performs. Now, Uncle sam tells the poor guy he now owes $4/hr from his wages. He then tells the rich guy that he only owes $2/hr off the profit he makes from the poor mans labor. How is that fair?