• Date Started: Oct 23, 2007
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An income of $30,881 puts you in the top 50%

9 Responses to “An income of $30,881 puts you in the top 50%”

1. Amber Says:
   December 20th, 2007 at 03:59 pm
   I am glad you posted this, my sister and I had a big fight. I tried to explain to her that the rich pays more in federal income tax

2. nomorecredit Says:
   December 20th, 2007 at 04:58 pm
   Wow, very interesting! Thanks for posting this.

3. Broken Arrow Says:
   December 20th, 2007 at 07:08 pm
   Hmm, in that case, I'm higher than I expected... which still isn't saying much but ah well.
   
   As for the rich paying more, I just want to make a comment that while the rich indeed pay more, it would seem that the super rich does not. If Warren Buffet is correct, for some reason, there is an income tax cap of 90k. After which, he claims that he doesn't pay beyond that. If that's true, the super rich (but not the regular rich) indeed do pay far less, relative to their income.

4. davera Says:
   December 20th, 2007 at 07:42 pm
   Interesting point, BA. You're right that the primary taxable income for the super rich comes from dividends and capital gains, which are taxed at 15%, a lower tax rate than that on ordinary or earned income. This is the case for Warren Buffett, who indicated he paid taxes on $66 million of income at a rate of 17.7%, or $11.7 million in taxes.
   
   I believe the 90k cap he referred to in his interview with Tom Brokaw was not his income tax cap, but rather the fact that the tax code has a limit of 90k on payroll taxes. Upon reaching that limit, one is not subject to further payroll taxes, no matter what their salary is.

5. Mulyanto Says:
   December 21st, 2007 at 07:01 am
   Yes it's true, the top earners pay a higher PERCENTAGE of their income, because they are in the top tax bracket (39% I believe). I come from a fairly wealthy family my parents are in the top 3% of income earners. My siblings and I (all under 26 yo) are all in the top 10%-40%. The difference is that I think we are not paying ENOUGH taxes. Personally, I think that if you live BELOW the POVERTY LINE you should not have to pay taxes. Secondly, if you make more than $250,000 I think there should be an extra bracket of at least 55%. And yes, I think captial gains should be taxed higher, maybe not quite as an income (you want to encourage saving) but at least at a higher percentage.

6. disneysteve Says:
   December 21st, 2007 at 09:42 am
   I have mixed feelings about the tax issue. Obviously, nobody wants to pay more taxes, but it just seems like the tax burden is distributed in such a lopsided way. The top 10% of earners pay 70% of taxes but earn only 46% of the income. How is that fair?

7. disneysteve Says:
   December 21st, 2007 at 09:44 am
   BA - The tax cap is on Social Security tax. If you earn over 90K, the remainded or your income isn't subject to the SS tax. That is one part of many proposals to "fix" SS.

8. M E Says:
   December 21st, 2007 at 10:40 am
   
   
   There is a very simple way to explain the whole tax thing :
   
   
   THE MORE YOU MAKE, THE MORE *THEY* TAKE!
   
   
   

9. Broken Arrow Says:
   December 21st, 2007 at 09:18 pm
   Thanks for the clarification guys. I didn't bother to check on the details when I made my original comment. I also know that the subject has made its rounds in the forums, so I'd rather not get too involved. Suffice to say, I look forward to a more reasonable taxation system overall. Like Buffet, I actually agree with a consumption model of taxation, rather than one that focuses so much on taxing productivity. I find that system most fair, but like Buffet has also mentioned, it isn't likely to happen.

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