FACT CHECK: Are rich taxed less than secretaries?

[Warph]

With all the hoopla currently surrounding Warren Buffet's tax rate (which is lower than his secretary's, which is a crock) and Obuma's continued calls for millionaires to pay their fair share, it might be a good idea for some actual fact-checking.  Luckily, Stephen Ohlemacher at the AP has obliged:


This year, households making more than $1 million will pay an average of 29.1 percent of their income in federal taxes, including income taxes, payroll taxes and other taxes, according to the Tax Policy Center, a Washington think tank. 

Households making between $50,000 and $75,000 will pay an average of 15 percent of their income in federal taxes. 

Lower-income households will pay less. For example, households making between $40,000 and $50,000 will pay an average of 12.5 percent of their income in federal taxes. Households making beween $20,000 and $30,000 will pay 5.7 percent.

But that data is from some think tank... probably conservative-leaning... so it's not suppposed to be trustworthy, right?  But look, data from the IRS says pretty much same thing:

The latest IRS figures are a few years older — and limited to federal income taxes — but show much the same thing. In 2009, taxpayers who made $1 million or more paid on average 24.4 percent of their income in federal income taxes, according to the IRS.
Those making $100,000 to $125,000 paid on average 9.9 percent in federal income taxes. Those making $50,000 to $60,000 paid an average of 6.3 percent.

So, where are all of these millionaires, billionaires, and hedge fund managers that are getting away with paying lower rates than members of the middle class?  Aside from Warren Buffet, I mean...

http://news.yahoo.com/fact-check-rich-taxed-less-secretaries-070642868.html

[Patriot]

H.B. 25, Fair Tax Act.

Consumption tax on new goods/services only.
No interim taxes during the manufacturing/production process.
Monthly rebates of tax paid on all purchases made up to the poverty level.
Eliminates all income, estate, payroll (SS & medicare), self-employment, corporate, alternative minimum, gift & capital gains taxes.
Predicated on repeal of the constitutional authority for collection of income taxes (can't become an additional tax).
Eliminates the IRS completely (how much will that save the government).
Removes embedded (passed on) taxes hidden in retail prices.
Collected at point of sale (retail outlets already in place).
No tax returns to file (other than prebate requests, which are optional).
All US residents participate (even illegal aliens if they any make purchases).
Surprisingly supported by national associations of accountants.
Supported by large numbers of leading economists.
Will likely have positive impact on employment and repatriation of overseas corporate monies.

Read more:  http://www.amazon.com/gp/product/0060875496/sr=8-2/qid=1143644093/ref=pd_bbs_2/102-8721387-7781765?_encoding=UTF8#reader_0060875496

[Diane Amberg]

Now I'm really lost. If the minimum tax bracket is 10% and I'm in the 25% tax bracket, how can someone pay 6.3%?

[mtcookson]

But wait, there's more! If you make even less not only do you not pay in any at all, you can actually get some back! Yes, that's right... you can make a profit on income taxes! Act now! Punish the successful, reward those that are not!

Come join the 40% of American households that make profit on income taxes. Call 1-800-FAIR-SHARE to learn more. Get YOUR fair share today!



(don't actually call that number, searched online and can't seem to find where it goes )

[Warph]

Check out what your favorite Millionaire is worth... then check with
Teresa as to how that person beats the IRS in taxes each year. :
http://www.celebritynetworth.com/

[sodbuster]

Check out what your favorite Millionaire is worth... then check with
Teresa as to how that person beats the IRS in taxes each year. :
http://www.celebritynetworth.com/

Warph, the first thing I saw when I clicked the link was Holly Madison's fake cleavage insured for one million dollars. In my opinion my favorite redhead Sheila with non enhanced cleavage is worth far more.

As far as why Warren pays less than his "personal assistant" is because he gets a low salary and pay less when he does not declare  his income as salary but as some kind of other income. The point is there are many tax breaks that allow people to not have to pay taxes. The hard part is getting anyone to drop their lollipop.

David

[jarhead]

Quote from sodbuster:
In my opinion my favorite redhead Sheila with non enhanced cleavage is worth far more.


My advice to you is, you better keep your beady little eyes off my Golden Retriever. Sheila has fangs like a timber wolf and will rip your arse to shreds. Your little all boys vacation to Tahoe will be mild to your health compared to what Sheila will do to you !!!

[sodbuster]

Quote from sodbuster:
In my opinion my favorite redhead Sheila with non enhanced cleavage is worth far more.


My advice to you is, you better keep your beady little eyes off my Golden Retriever. Sheila has fangs like a timber wolf and will rip your arse to shreds. Your little all boys vacation to Tahoe will be mild to your health compared to what Sheila will do to you !!!

Jarhead, can't you find something of note that you have done since the 60's when you were a marine? Were you a class 4 recruit which is why  you carried the radio?   I am sorry you were in Vietnam and not WWII where the real heroes were. You guys got a raw deal from Vietnam you were just doing your duty even if was a waste of our troops.  You get honor for doing your duty.  Don't try to convince me you have any special insight into the current war than I do.

David

[jarhead]

You are one funny feller, David. Not sure what your rant here has to do with the rich being taxed or even red heads but it is humorous.
Please explain what a class 4 recruit is but when I was in boot camp I was a recruit but once I graduated I was no longer a recruit so me being a radioman in Nam, I don't think had anything to do with my being a recruit.
The rest of your rant about WW-II having the real heroes and all your other junk, I think is your attempt to get under my skin, you sly little bugger you. It didn't work---considering the source.

[Anmar]

I'm not sure if this is a result of intentional dishonesty, or just plain ignorance, but I think the argument isn't clear because you're all missing one key fact.  The tax rates outlined in these posts are INCOME tax.  People like Warren Buffet, hedge fund managers, mega wealthy people, etc make most of their money via CAPITAL GAINS.   Now CAPITAL GAINS have a maximum tax of 15%.  When they start getting all their deductions and loopholes and tax breaks, generally these super wealthy people end up paying 4-6% tax.

Remember, things like stock options, dividends, stock sales, real estate transfers, etc are not considered income.