1. A single person making $34,000 actually has an effective rate of less than 10%. If he is married and has a couple of kids, not only is his income tax -0-, but he probably gets some of his SS back through EIC and refundable child tax credits. 'Tick, why are you trying too mislead?bluetick wrote:This pearl came from News of the Weird (April 14, 2011). Everybody loves News of the Weird..
Leading Economic Indicators
- According to a February 2011 analysis of 2007 IRS statistics by a columnist for Tax Notes, the average taxpayer residing in New York City's posh Helmsley Building (owned before her death by Leona Helmsley, who once reportedly said "only the little people pay taxes") paid only 14.7 percent of his income in federal taxes while New York City janitors and security guards (such as those employed by the Helmsley Building) paid about 24 percent. Helmsley residents were taxed less for Social Security and Medicare, and much of their $1.17 million average income was in capital gains, which are taxed at the same rate as modestly paid (up to $34,000 a year) workers.
2. Social Security and Medicare has always, since it's inception, been calculated on earnings, not investement income. That's the way the Fedral Insurance contribution Act was authored by FDR. It's an insurance program. What you get, depends on what you pay in. So after 70 years, you want to change it?
3. Since 1921, capital gains rates have always been lower than ordinary (compensation rates). Every President and 90% of economists believe this is good for the economy. In fact, Bill Clinton, a democrat, has made the biggest historical reduction of capital gains rate of any President.
