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The top 10% includes people that don't use the carried interest exemptions. If you buy a company, turn it around, and sell it you will pay tax at ordinary income rates, but hedge fund managers can get away with paying 15%.
Let's look at reality, shall we?
Actual average effective federal income tax rates, by income group:
Top 0.1%: 22.84%
Top 1%: 23.39%
Top 5%: 20.64%
And then a HUGE effective rate drop-off below the top 5%...
Top 5-10%: 11.98%
Top 10-25%: 8.70%
Top 25-50%: 6.01%
Bottom 50%: 2.37% Summary of Latest Federal Income Tax Data
Originally Posted by steven_h Up until a few days ago I parroted the same meme. I researched it more, and there's no way around that carried interest loophole.
Here, let me make it easy for you.
There are 100 people on earth.
There is $1B in cash.
One man owns $999M and the other 99 own $1m
The one man with all the money pays 1% in tax, while the others pay 10%
The wealthy man accounts for 90% of the tax revenue.
According to you, this is a fair situation.
Quote:
Originally Posted by MattOTAlex
Strawman fallacy.
Do you have another nugget of wisdom to share?
Wow... I'm a diehard Libertarian, outspoken fiscal conservative, and now I know what it's like to be on the receiving end of conservative deflection. YOU are not worth the time it takes to explain a valid position.
Actual average effective federal income tax rates, by income group:
Top 0.1%: 22.84%
Top 1%: 23.39%
Top 5%: 20.64%
And then a HUGE effective rate drop-off below the top 5%...
Top 5-10%: 11.98%
Top 10-25%: 8.70%
Top 25-50%: 6.01%
Bottom 50%: 2.37% Summary of Latest Federal Income Tax Data
Are you trying to imply that carried interest is not taxed at 15%? I assure you that it is.
Ignore the bias against conservatives, and focus on the way crony capitalism works. You can just as easily replace K0ch Brothers with Soros. Replace Americans for Prosperity, with Open Society Institute. This shows how crony capitalism works in DC, and how it is wrecking America.
Anyone on either side of the aisle should watch this documentary.
We celebrated the 50th anniversary of Martin Luther King Jr.’s iconic “I Have a Dream” speech and the March on Washington for Jobs and Freedom in a ceremony that was capped off by the Commander in Chief himself. I watched as speaker after speaker paid homage to the late great civil rights leader and gave their rallying cries to the masses to fight on. It was beautiful moment and offered a glimpse into history for those like myself who weren’t alive during the original march.
The only damper on the ceremony was the dreary weather that hovered over the nation’s capital yesterday, but given the status of the goals of the original march, jobs and freedom; the backdrop was perfect. As far as the forecast of jobs and freedom goes, the rain may have stopped but it’s still cloudy.
While we definitely have made a lot of progress in the fight for civil rights, we are still far from achieving the economic freedom that King dreamed about. The economic plight of the African-American community may be much improved from the era of racially restrictive housing covenants and massive redlining (a practice by which banks avoided giving loans to minorities or for projects in minority neighborhoods) but we still find ourselves in an era where the median white family’s wealth is more than 20 times greater than that of the median black family.
There is much work to be done and this problem will be more difficult to eradicate than other issues of the civil rights struggle. Unlike discriminatory hiring practices or racially restrictive housing covenants, there are no laws that can serve as a quick fix to the problem. It is far too complex.
I agree, so I issue this "Call to Action" to narrow or eliminate the Wealth Gap
Hear ye, Hear Ye.
Let it be know to all slackers, layabouts, non-hackers, bums, welfare queens and kings, and slobs, that you are failing miserably in your responsibility to become successful, to become wealthy. You are letting others run circles around you.
You are hereby put on notice that your laziness, lack of ambition, etc. et al will no longer be tolerated. You will become successful and wealthy or suffer under pain of expatriation to some other country more in line with your slothfulness (Third or Second Word).
This notice applies to all, regardless of race, color, creed or previous familial success.
Perform or be exported to the dung-hole of your deserts..
...The one man with all the money pays 1% in tax, while the others pay 10%
Except we know for a fact that isn't true.
Let's look at the actual facts again:
Actual average effective federal income tax rates, by income group:
Top 0.1%: 22.84%
Top 1%: 23.39%
Top 5%: 20.64%
And then a HUGE effective rate drop-off below the top 5%...
Top 5-10%: 11.98%
Top 10-25%: 8.70%
Top 25-50%: 6.01%
Bottom 50%: 2.37% Summary of Latest Federal Income Tax Data
Now, let's put that in perspective.
For purposes of this example, let's assign the top 25-50%'s 6.01% average effective federal income tax rate reported by the IRS to an income of $40,000. The tax paid would be $2,404.
Now let's apply the top 1%'s 23.39% tax rate to an income 14 times higher, $560,000, which is an income in the top 1%. The tax paid would be $130,984.
The top 1% earner would be paying 54.5 times as much tax as the middle-income earner, while earning only 14 times as much income.
The higher the income disparity, the more the multiplier amplifies it. For example, if a 1%er earns 30 times a middle class income, the net result would yield about 30 x 4* = 120 times more in income tax revenue than a middle class earner would pay.
Anyone who whines and complains about the rich supposedly not paying their fair share clearly has NO idea what they're talking about.
* The multiplier of approximately 4 comes from dividing the top 1%'s tax rate of 23.39% by the middle class's tax rate of 6.01%.
Wow... I'm a diehard Libertarian, outspoken fiscal conservative, and now I know what it's like to be on the receiving end of conservative deflection. YOU are not worth the time it takes to explain a valid position.
Well, that was quick. When the ad hominem attacks start, the person has already failed.
Question steven what percent of the pie should those rich pay, in your fair share world?
Lol. This aught to be entertaining, considering the wealthy already pay the majority of taxes.
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