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July 27th, 2011, 08:25 PM   #20 (permalink)
persim
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Quote:
 Originally Posted by nlsme 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?
I am sure most Democrats in congress take full advantage of these tax laws, I have never seen any one of them ask to give the money back because they thought it was unfair.

Quote:
 Originally Posted by nlsme 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?
This scenario is completely wrong. The rich guy is not an investor, he is an employer. He pays the employer part of the workers payroll taxes and pays for taxes on his earned income.

Quote:
 Originally Posted by noah way Progressive tax means the rate rises for each tax bracket. Taxes on the first 8,500 is 10%, from 8,500 to 34,500 is 15%, from 34,500 to 83,600 is 25%, etc. So the guy on minimum wage is paying the exact same tax as you are on that level of income.
I never said wealthy people are paying more on the lower income.

That is why I said you can not compare effective to marginal tax. Marginal=Progressive

Quote:
 Originally Posted by noah way Payroll tax is capped at \$106,800 of income. Someone making that amount pays 6.2% (and their employer pays another 6.2%). Someone making double that amount (\$213,600) only pays 3.1% payroll tax. The more money you make (over \$106k) the lower the percentage you pay. This is but one of many tax benefits the wealthy get.
Payroll taxes maybe capped at 106k but income tax sure isn't. This small benefit does not make up for the outrageous income taxes the wealthy pay, anywhere from 35%-50% depending on who controls the government.

As I said in a prior post I am in favor of a simplified tax system where everybody would be charged 18-22% on all income no matter what their type of income.

Quote:
 Originally Posted by noah way If they have money they do. The poor and middle classes don't have money to invest, so they do not have the opportunity to receive the tax benefits that investors get. This is a clear case of tax policy that rewards the rich.
This is completely untrue, I have been investing since I was 16 with a minimum wage job, when I was paying my way through college and up until today. Everybody has the opportunity to invest, whether they choose to or not is a completely different matter.