The working poor pay more then twice as much in taxes as the rich (gallon, statistics)

[le roi]

Originally Posted by Driller1

Just mine???

If the bank wants ONLY your money, and no one else's, I would caution you that perhaps it isn't a bank...

That is true.....but, they do need the deposits of many.

Sure.

Now they have a problem...since our money is worth so little....they pay next to no interest.

That hurts them in getting deposits.

That's probably not a problem for them, because they only need a relatively small amount of deposits in order to meet the reserve requirements.

[Driller1]

Originally Posted by le roi

No, I said that banks don't lend out rich peoples' money.



No, you asked me if I could set up bank without any capital.



No, I never stated that I was starting a bank, nor did I state that I needed deposits.

They lend out ALL deposits.

I had to give a two day noticed to get my money out.

[le roi]

Originally Posted by smalltownblues

Oh, so they don't lend out rich people's money, but they need the rich people's money. This makes a lot of sense.

Pretty much.

Now, they will loan out deposits -- because the cost of capital is low. But that doesn't mean they need those deposits in order to lend.

However they do need some portion of deposits (kept in reserve) in order to borrow from the Fed, in order to lend.

[Driller1]

Originally Posted by le roi

If the bank wants ONLY your money, and no one else's, I would caution you that perhaps it isn't a bank...



Sure.



That's probably not a problem for them, because they only need a relatively small amount of deposits in order to meet the reserve requirements.

I agree...that is why I had to give them a notice of withdrawal.

[smalltownblues]

Originally Posted by le roi

Pretty much.

Lol, I'm sure everyone reading this is thinking the same thing right now.

Thanks for participating in this with me.

[le roi]

Originally Posted by Driller1

They lend out ALL deposits.

I doubt that -- if they lent out all of their deposits, they would have to borrow overnight from other banks to maintain the minimum reserve ratio.

[Driller1]

Originally Posted by le roi

Pretty much.

Now, they will loan out deposits -- because the cost of capital is low. But that doesn't mean they need those deposits in order to lend.

However they do need some portion of deposits (kept in reserve) in order to borrow from the Fed, in order to lend.

Ever notice banks changing names???

And some just close do to not having enough money.

[Driller1]

Originally Posted by le roi

I doubt that -- if they lent out all of their deposits, they would have to borrow overnight from other banks to maintain the minimum reserve ratio.

I did not say all at the same time.

However, all is subject to being used.

[Bill Keegan]

Originally Posted by le roi

that's another one of those right-wing myths. .

banks don't need "rich peoples money" to lend. banks borrow directly from the federal reserve bank.

Banks need money (they don't care whether it's rich people's money, poor people's money or dead people's money) to keep as reserves if they want to "borrow" money from the fed to lend out.

Can we all agree that rich people have more money in banks than poor people have in banks?
So, while banks don't need rich people's money to lend, they do need rich people's money so that they may lend. And that's really the point that was being made, and that you tried to derail.

[HappyTexan]

Originally Posted by greywar

I know, you all looked at the title, and said "I am going to go into this thread and tear into this, this guys wrong. We ALL know the rich pay more!"

But thats because the debate is all about cherry picking data. We look at federal taxes-but exclude social security which is a 6.3%+6.3% tax....paid for by the working poor. But ONLY on the first 112K of income. The average .1%er has it as a rounding error. Heck as a % of my income I paid more in social security then Romney paid in federal....but then again my federal rate was ALSO higher then his....

But wait...what about state taxes? Turns out thats paid at a 5.6% rate by the average .1%er....and 11% for the poor folks.

So all this screaming about the federal rate, conveniently ignores the other taxes. Why is that? hmmmmm

edit-To clarify the title, twice as much as a % of their income.

There's LOTS of taxes ignored.

Your total tax burden (city, county, state, federal) is $.59 on every $1.00 you make.
The various levels of government take theirs and leave you with $.40.
And that is up from $.54.

Yup..your levels of government are nickeling and diming you to death and you don't even realize it.
That's why over 75% of working Americans are living paycheck to paycheck.

You only get to keep less than half of what you earn to spend as you please.