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 Post subject: Re: Re:
PostPosted: Fri Jul 29, 2011 1:56 pm 
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Xequecal wrote:
The employer side of Social Security (which self-employed individuals have to pay) does not have a cap.

I don't think that's true, Xeq. See here:

Wikipedia wrote:
the Social Security Wage Base (SSWB) is the maximum earned gross income or upper threshold on which a wage earner's Social Security tax may be imposed....In 2010, the Social Security Wage Base is $106,800 and the Social Security tax rate is 6.20% paid by the employee and 6.20% paid by the employer....A person with $110,000 of gross income in 2010 incurs Social Security tax of $6,621.60..., with $6,621.60 paid by the employer. A person earning a million dollars in wages will pay the same $6,621.60 in Social Security tax..., with similar employer matching.


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 Post subject: Article on Flat Tax
PostPosted: Tue Aug 02, 2011 2:08 am 
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RangerDave wrote:
Xequecal wrote:
It's pretty easy for someone with an extraordinarily high income to pass the 50% mark. 35% Federal income tax, 1.5% Medicare tax, lets say 12% state income tax. (some states have income tax at this level for high earners) If you add sales tax and property tax you're easily at 50%. If this person is self-employed it passes 60%, as you have to pay another 1.5% in Medicare tax and then 6.2% SS tax without a cap.


I don't think it adds up. The 35% top Federal bracket kicks in at like $380k for a single person, but Social Security only gets taken out on roughly the first $110k, so if you're trying to figure the marginal rate on someone with an income of $380k, Social Security isn't a factor. Property and sales taxes aren't applicable either, since they aren't related to income. At worst then, for a self-employed, single individual living in the highest-tax state in the country, you have 35% Federal, 12% State, and 3% Medicare, for a total of 50% as the absolute maximum marginal income tax rate.

You say that like it's a good thing. So it's okay to take half of someone's income and none of someone else's. That strikes you as fair?

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PostPosted: Tue Aug 02, 2011 2:47 am 
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PostPosted: Tue Aug 02, 2011 4:49 am 
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Fairness is just rhetoric. What is "fair" to you or to me? I think fair is that we all pay the same regardless of income.

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 Post subject: Re: Article on Flat Tax
PostPosted: Tue Aug 02, 2011 9:40 am 
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Rorinthas wrote:
You say that like it's a good thing. So it's okay to take half of someone's income and none of someone else's. That strikes you as fair?

To clarify, the 50% figure is the marginal rate on the last dollar earned; not the percentage of total income paid to taxes. That said, I agree that the income tax has become too progressive. I think people at the high-end of the income spectrum can and should pay a bit more than they do now, but I also think taxes should go up on people in the lower and middle parts of the spectrum. I'm definitely on board with the idea that everyone should have skin in the game, and right now, our system doesn't do enough to connect the pain of taxes with the pleasure of spending for most voters.

*Edited to correct quote tags.


Last edited by RangerDave on Tue Aug 02, 2011 10:02 am, edited 1 time in total.

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 Post subject: Re: Article on Flat Tax
PostPosted: Tue Aug 02, 2011 9:49 am 
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Quote:
I think people at the high-end of the income spectrum can and should pay a bit more than they do now



There's that liberal mantra again. More. Every year, every month, every day. More. Nothing specifice, no regard to how much the "rich" already pay...just more. Gotta keep that voting base on the goverenment tit!

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PostPosted: Tue Aug 02, 2011 10:08 am 
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Quality post, NF. Really adds to the conversation.


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PostPosted: Tue Aug 02, 2011 10:13 am 
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RangerDave wrote:
Quality post, NF. Really adds to the conversation.



No problem RD. Just call it like I see it.

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PostPosted: Tue Aug 02, 2011 10:25 am 
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Do you honestly believe that, though? I mean, snark and internet-debating aside (not that I don't enjoy those too!), do you really think that the average liberal (a) believes the amount "the rich" currently pay is irrelevant to the question of whether or not they should pay more; and (b) is driven by a desire to keep their voting base dependent on government assistance? Really and truly - is that what you think?


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PostPosted: Tue Aug 02, 2011 10:41 am 
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I do RD.

You haven't been to dkos lately or many other left leaning blogs.

It is literally "make the rich pay for being rich" repeated in different forms and with different levels of frothing anger but the message is the same.

Rich people should pay because they have more and they have more because they are evil and they are evil because they are rich.

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PostPosted: Tue Aug 02, 2011 10:48 am 
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RangerDave wrote:
Do you honestly believe that, though? I mean, snark and internet-debating aside (not that I don't enjoy those too!), do you really think that the average liberal (a) believes the amount "the rich" currently pay is irrelevant to the question of whether or not they should pay more; and (b) is driven by a desire to keep their voting base dependent on government assistance? Really and truly - is that what you think?



Like with everything, do I think that is what every lib or dem thinks? No. Do I think most do? Yes. I've read way to much, seen to much debate and heard way to many people talk to not think that.

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PostPosted: Tue Aug 02, 2011 10:49 am 
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I should point out that literally being "make the rich pay for being rich" would indicate those are the words being used, not some interpretation of whatever is the stated stance.

Carry on.


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 Post subject: Re: Article on Flat Tax
PostPosted: Tue Aug 02, 2011 12:42 pm 
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RangerDave wrote:
Rorinthas wrote:
You say that like it's a good thing. So it's okay to take half of someone's income and none of someone else's. That strikes you as fair?

To clarify, the 50% figure is the marginal rate on the last dollar earned; not the percentage of total income paid to taxes. That said, I agree that the income tax has become too progressive. I think people at the high-end of the income spectrum can and should pay a bit more than they do now, but I also think taxes should go up on people in the lower and middle parts of the spectrum. I'm definitely on board with the idea that everyone should have skin in the game, and right now, our system doesn't do enough to connect the pain of taxes with the pleasure of spending for most voters.

*Edited to correct quote tags.


My understanding was we don't have a sliding rate tax in this country. that you paid the percentage of the first dollar that you do on the last. That's why people complain that raises and overtime just push them into a higher bracket. Or when you make a big commission check federal withholding thinks you're going to make that kind of money 52 weeks a year and withholds appropriately. Am I wrong?

Also people are telling me anecdotally that they are paying 50% or more in taxes/revenue. Are they lying to me?

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 Post subject: Re: Article on Flat Tax
PostPosted: Tue Aug 02, 2011 12:52 pm 
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Only people subject to the Alternative Minimum Tax don't have a sliding tax rate in the United States.

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PostPosted: Tue Aug 02, 2011 12:58 pm 
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Alright. I misunderstood on that. My second question about anecdotal evidence stands then please. Another open question: If Federal spending is 15% of GDP, would a 15% flat no exception tax on every dollar earned (or better yet spent) balance the budget? Please bare with me I didn't get to take Econ in High school. All my electives went to vocational school.

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 Post subject: Re: Article on Flat Tax
PostPosted: Tue Aug 02, 2011 1:03 pm 
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Rorinthas:

The short answer is ... No. After all, we don't tax government expenditures.

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PostPosted: Tue Aug 02, 2011 1:10 pm 
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Good point, thanks. So we'd need more to start with. I"m sure there's a way to figure it out though.

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 Post subject: Re:
PostPosted: Tue Aug 02, 2011 5:04 pm 
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RangerDave wrote:
Do you honestly believe that, though? I mean, snark and internet-debating aside (not that I don't enjoy those too!), do you really think that the average liberal (a) believes the amount "the rich" currently pay is irrelevant to the question of whether or not they should pay more; and (b) is driven by a desire to keep their voting base dependent on government assistance? Really and truly - is that what you think?


Yes, I think it's fairly clear that the average liberal does not see any relationship between how much the rich pay and whether they should pay more. To the average liberal, there is always some wrong to be righted, and thus, the rich can always pay more - they're rich after all!

I've pointed out repeatedly how we always hear about the rich paying "their fair share", but never want to explain what a "fair share" would be or how much would be too much.

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