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Left wing posters keep talking this rich vs. poor rhetoric, but I haven't seen a one address the nuts & bolts problem of how the cut is to be made up. Social security is now in the red, and it happened much sooner than had been anticipated by analysts. And the bb boomers, approx one fourth of the national work force, are beginning to retire now.
This is the exact 'gladly pay you on tuesday for a hamburger today' thinking that has gotten us into such a mess.
I mentioned a possible solution in a previous post...Remove the 106,000 cap. Right now only the first 106,000 is subject to the payroll tax. Therefore, a person making 6 million still only has to pay the same thing as someone making 106,000. Take off the cap and you will see a big offset.
I mentioned a possible solution in a previous post...Remove the 106,000 cap. Right now only the first 106,000 is subject to the payroll tax. Therefore, a person making 6 million still only has to pay the same thing as someone making 106,000. Take off the cap and you will see a big offset.
Well in my case I own an S-corp. I pay myself a reasonable wage which is subject to payroll taxes. Everything else passes through the corporation to me as capitol gain profits. Raise the bar for payroll taxes and I just give myself a wage adjustment decreasing the level of my salary which decreases my total contributions based on the percentage. Then I increase the amount of regular profit taking to by pass the increase.
Now for me my salary is still below the 106,000 so it really make no difference currently in my situation. With LLC's and regular C-Corps I am sure there are a million ways to skin that cat. Plus most of the business owners I work with are partners and single owners in multiple Legal entities and spread their dough around.
Your plan would have to adjust many different pieces of the tax puzzle to achieve your plan.
You would get more money initially but those high paid accounts would be working harder to work around your plan.
Left wing posters keep talking this rich vs. poor rhetoric, but I haven't seen a one address the nuts & bolts problem of how the cut is to be made up. Social security is now in the red, and it happened much sooner than had been anticipated by analysts. And the bb boomers, approx one fourth of the national work force, are beginning to retire now.
This is the exact 'gladly pay you on tuesday for a hamburger today' thinking that has gotten us into such a mess.
Try eliminating the billions in corporate welfare, bank bailouts, and monies lost through not taxing over a certain amount made by individuals.
Well in my case I own an S-corp. I pay myself a reasonable wage which is subject to payroll taxes. Everything else passes through the corporation to me as capitol gain profits. Raise the bar for payroll taxes and I just give myself a wage adjustment decreasing the level of my salary which decreases my total contributions based on the percentage. Then I increase the amount of regular profit taking to by pass the increase.
Now for me my salary is still below the 106,000 so it really make no difference currently in my situation. With LLC's and regular C-Corps I am sure there are a million ways to skin that cat. Plus most of the business owners I work with are partners and single owners in multiple Legal entities and spread their dough around.
Your plan would have to adjust many different pieces of the tax puzzle to achieve your plan.
You would get more money initially but those high paid accounts would be working harder to work around your plan.
I see your point, but would you not be better off paying the lower percentage of payroll tax than 15% capital gains tax. Why would a person shoot themselves in the foot.
I mentioned a possible solution in a previous post...Remove the 106,000 cap. Right now only the first 106,000 is subject to the payroll tax. Therefore, a person making 6 million still only has to pay the same thing as someone making 106,000. Take off the cap and you will see a big offset.
It wasn't supposed to be a redistribution program. It's a little dishonest to enact it as 'insurance' only to shift it to redistribution when the opportunity arises. On the other hand I think that there is a lot that is dishonest about the entire SS program, so what's one more thing? Anyway like I say, your idea would be better than just letting red ink flow. Do
I see your point, but would you not be better off paying the lower percentage of payroll tax than 15% capital gains tax. Why would a person shoot themselves in the foot.
Its not that simple. Its not an apples to apples comparison. You are forgetting it not just federal payroll taxes but state as well. Then depending on your profit you might pay 0% on capitol gains. Trust me there are lots of legal ways to mitigate profit especially with a proficient accountancy and tax attorney on your side.
Here's another stat you might enjoy, wjwet. One hundred percent of taxes on beachfront property in California is paid by beachfront property owners in California. That's so unfair! When will the lucky duckies who don't own beachfront property pitch in?
If you're not making enough income to pay for life's luxuries, you're not making any taxable income. Our government does not (yet) take food out of the mouths of poor babies. That's just wrong. Our income tax system is set up so that every person, rich or poor, gets to keep most of the income they make that goes toward securing life's necessities.
Now of course the poor pay plenty of other taxes -- sales, payroll, etc. But we don't tax meager incomes at the federal level. (Many states do though.. you'll probably be happy to hear that Alabama takes a cut of a single mother's income if it exceeds $4,500 a year. Nice, right? Stick it to her. Only have one rag to wear? Well, you better rip it in half and give me my cut... I'm a Republican, and I want everything to be "fair.")
So the top 1% pay 38 % of taxes collected. So how much do you think they should pay?
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Republicans don't mind ending tax cuts, as long as they are on the middle class
