Question about income tax - Democratic Underground

rastignac5

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Wed Aug-11-04 12:26 PM
Original message

Question about income tax

I thought I remembered seeing a while back a breakdown that showed a $70K annual earner payed more as a percentage of their salray in federal income, SS and medicare taxes than somebody making $25 million a year. Can anybody provide a link or did I just dream this up?

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BlueEyedSon

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Wed Aug-11-04 12:29 PM
Response to Original message

1. The tax code is not designed that way (it's progressive)

But in practice, the rich find more loopholes, have more tax-exempt passive income, etc.

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rastignac5

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Wed Aug-11-04 12:38 PM
Response to Reply #1

2. No- it had to do with the fact that the 35% marginal rate did not make up

for the 6.5% percent SS tax that all people making up to $90K have to pay.

Or something like that.

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medeak

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Wed Aug-11-04 03:18 PM
Response to Reply #1

3. loopholes indeed for business owners

embarrased to say company bought gas hog excursion as 100% can be depreciated in one year as meets "heavy equipment" loophole. Gee...wouldn't it make sense to give tax break to prius?

Also took stock dividend rather than bonus as taxed half. Can only imagine how much that saves Cheney et all...

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umass1993

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Wed Aug-11-04 07:31 PM
Response to Original message

4. I would suggest reading

"Perfectly Legal". This guy is a true expert on federal tax code.

If I may paraphrase him,"the federal tax code is not incomprehendible, it just took me ten years of my life to figure it out."

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