Is it ok for super rich to pay a lower effective tax rate than middle class?

[michal1980]

But that's true right now.

Mitt Romney paid 14% taxes on $14,000,000
The average person pays ~20% taxes on ~$50,000.

That means Romney paid $1,290,000 in taxes, compared to $10,000 in taxes for the average family. Romney in dollar amounts paid a higher amount in taxes then the average person, though he paid much less money percentage wise.

False

http://www.foxnews.com/politics/201...x-rate-really-lower-than-yours/#ixzz27ZSphHft

Rommeny pays a higher rate then 97% of americans.

 

[Jhhnn]

False

http://www.foxnews.com/politics/201...x-rate-really-lower-than-yours/#ixzz27ZSphHft

Rommeny pays a higher rate then 97% of americans.

Oh, please. He paid a slightly higher tax rate than filers making $112K/yr, people at the 90th percentile.

Over 100X the money, with a rate <3% higher. Cry me a river.

http://taxfoundation.org/article/summary-latest-federal-individual-income-tax-data-0

 

[werepossum]

Prices of US stuff stays same
Employer doesn't pay taxes on employee (You assume that employer would pay extra to employee...doubtful but maybe)
Employee pays no income (or payroll?) taxes
Prices on foreign stuff rises

Tax revenue stays same?

No chance.

The math isn't there unless foreign stuff rises through the roof. Not going to happen.

Roughly half of all goods sold are imported. Right now, imported goods compete with American goods (and other imported goods) in the market place, with the benefit of lower taxes as well as lower labor rates. Under the FairTax, imported goods would have the same effective US tax rate as American goods, PLUS the tax rate in their country of origin. That would make US goods much more competitive. You can if you wish go to FairTax.org and see the math for yourself - though I suspect your objects are rooted not in math, but in envy.

The FairTax framers state that market pressure will cause employers to give employees the matching "contribution"; personally I think it would have to be made law. Far too many people simply aren't worth more than they are now paid, especially given the current very high unemployment. But it doesn't really matter. Congress will never vote away their biggest source of power and fund raising, the ability to punish and reward via the tax code. And even if the Congresscritters had such a mind, the American people will never support a tax scheme that doesn't punish the wealthy, even if convinced they and the country will benefit. The irony of course is that the truly wealthy now pay no higher a percentage (and sometimes less) than do the middle class.

 

[Engineer]

Roughly half of all goods sold are imported. Right now, imported goods compete with American goods (and other imported goods) in the market place, with the benefit of lower taxes as well as lower labor rates. Under the FairTax, imported goods would have the same effective US tax rate as American goods, PLUS the tax rate in their country of origin. That would make US goods much more competitive. You can if you wish go to FairTax.org and see the math for yourself - though I suspect your objects are rooted not in math, but in envy.

The FairTax framers state that market pressure will cause employers to give employees the matching "contribution"; personally I think it would have to be made law. Far too many people simply aren't worth more than they are now paid, especially given the current very high unemployment. But it doesn't really matter. Congress will never vote away their biggest source of power and fund raising, the ability to punish and reward via the tax code. And even if the Congresscritters had such a mind, the American people will never support a tax scheme that doesn't punish the wealthy, even if convinced they and the country will benefit. The irony of course is that the truly wealthy now pay no higher a percentage (and sometimes less) than do the middle class.

You have to know by now that I hate it that foreign products get unfair trade from currency and other wage issues. Would love to see it all back. That giant sucking sound from around the world is killing us to the core.

Not sure why you would think my "objects" are rooted in envy. I'll take another look at it but there is no magic pie in the sky math to me that makes this feasible. Although, you did notice that I mentioned that if foreign products could add enough but to that end, if foreign products went up, more US products would be bought resulting in a much lower tax than currently is being brought in. Again, it's not that I don't want to believe, I just don't see it (and I do understand math pretty well but that' usually the calculus stuff (many, many, many classes for EE's you know)).

 

[cybrsage]

I am shocked to find out people are complaining that Romney gave 30% of his income to charity. I thought libs cared about people.

 

[cybrsage]

Prices of US stuff stays same
Employer doesn't pay taxes on employee (You assume that employer would pay extra to employee...doubtful but maybe)
Employee pays no income (or payroll?) taxes
Prices on foreign stuff rises

Tax revenue stays same?

No chance.

The math isn't there unless foreign stuff rises through the roof. Not going to happen.

You are being way to simplistic with how the current system works...and then applying that simplicity to the change and then wondering why you cannot understand the math.

The answer to your question is on the Fair Tax website. They have covered it already.

 

[blankslate]

According to St. Reagan...

No...

http://www.youtube.com/watch?feature=endscreen&v=E_XUAk-PVJ0&NR=1

the particular part you should focus on below.

http://www.youtube.com/watch?v=KTBt5APga7Q

This is why you hear the libruls say that Ronald Reagan would not be accepted by today's "Republican" party.


Remember. Clinton was right. Democratic Administrations oversaw more jobs created than Republican Administrations.

http://www.factcheck.org/2012/09/our-clinton-nightmare/

And plenty of other Clinton statistics checked out as accurate. For example, he said that since 1961, when John F. Kennedy took office, 42 million private-sector jobs had been added while Democrats held the White House, compared with 24 million while Republicans were in office. And that&#8217;s exactly what Bloomberg News reported in a May 8 story.

http://www.politifact.com/truth-o-m...linton-says-democratic-presidents-top-republ/

Clinton&#8217;s figures check out, and they also mirror the broader results we came up with two years ago. Partisans are free to interpret these findings as they wish, but on the numbers, Clinton&#8217;s right. We rate his claim True.

Perhaps a couple of posters here hate my posts in general on P&N, based on the quality of their posts....
I welcome that.

 

[piasabird]

Romney probably has both paid more taxes than most americans and has also donated more money to charity than most americans. How is he any different from Bill gates or all the other rich liberals like Al Gore? I remember when Kerrey was running for president. Wasnt he married to the Hunts Airess? She did not even know what chilli was. How can people like that lead our country?

The current president has already sold this country to China and is currently just printing money. That is bound to really help our economy. If I build a printing press, what do you think they would do to me as a private citizen? They would put me in jail.

 

[Jhhnn]

So? The rich already pay low percentages, but with The Fair Tax, their actual dollars paid will go up.

Hogwash. That's mere assertion unfounded in fact.

America's wealthiest 400 tax filers paid ~20% in federal income tax an average of $200M in 2009. The notion that they spent enough money on items taxable under the "Fair Tax" regime to equal the $40M apiece they paid is absurd. If they spent half of it on taxable items, another absurdity, their taxes would only be $23M.

The whole thing is a well constructed sham intended to relieve America's wealthiest of their tax burden almost entirely. In order to be revenue neutral, that burden must obviously be shifted down the scale.

 

[blankslate]

Romney probably has both paid more taxes than most americans and has also donated more money to charity than most americans. How is he any different from Bill gates or all the other rich liberals like Al Gore?

Bill Gates or all the other rich liberals didn't make their money running an investment capital firm that "harvested" businesses like Mitt Romney did...

http://www.youtube.com/watch?v=caqHoUCTitQ

Basically when they have a majority stake in a company it goes under... the companies that they had a minority stake in were the ones that lasted.

 

[1prophet]

I'm curious why we never talk about full tax for corporations that are not employing in and investing in USA? I'm all for low tax on corporations that are invested and creating jobs in the US but if they are not and they are making money here than they should get normal tax rates...and no subsidies...

Shhh, you might wake them up, and yes if a corporation invests and employs in other countries to avoid labor, safety, and environmental laws but require that most of their income come from the USA then full tax and tariffs on them.

Had no problem doing it to Japan in the 70's-80's, thats why they built auto plants here.