[quote=ctr70]I just went on a tax calculation web site and compared what someone living in CA making $400k a year vs. someone making $40k pays in total taxes. The assumption for sake of discussion is single person:
$40k income
-$5,484 federal taxes
-$1,680 social security
-$576 Medicare
-$396 SDI
-$1,320 CA state income taxes
Total:$9,456 – 23% of income
$400k income
-$116,400 federal taxes
-$16,800 social security
-$5,796 medicare
-$3,996 SDI
-$40,608 CA state income taxes
Total:$183,600 – 46% of income
So the person making $400k pays 20 times more in taxes as a total dollar amount! And the liberals want them to pay more!!! $183,600 is not enough blood for the parasites! What would be fair if it was a flat tax and the person making $400k also paid a total of 23% out of their paycheck. They would still be contributing $92,000 vs. $9,456 for the person making $40k. Still 10 times as much!
I personally think the whole escalating tax brackets are total BS. It is basically a legal means for the lower income to steal from the higher income because they outnumber them in the electorate & will always vote for the candidate who taxes “the rich” more. The ONLY guy who EVER got it right was Steve Forbes with the flat tax plan. Why should a person making $400k have to pay out double the % of his income as a guy making $40k? There has never been a good reason for it. It is totally unjust and unfair and IMO a Governmental form of theft, a form of stealing. A much better plan is the RADICAL shrinking of the size and scope of Government and more frugality with tax dollars collected, so our citizens can keep more of their money & choose to spend it how they wish.
I do not want to live in a Euro-style quasi socialist society where the Gov takes 60% of my income and re-distributes it. I don’t want to live in a place with chronic high unemployment and stagnant economies with no decent jobs like Greece, Spain, Italy, France, Portugal, etc… I would rather personally choose how I spend my money.[/quote]
The fairest form of taxation is one where ALL types of income are taxed at the same, progressive rates. There is absolutely no reason to tax labor at the highest rates.
The tax collection issues in the above-named countries is one of the main reasons they are having such a difficult time with public finances.
…
“…Tax evasion is less an under-the-radar activity, more a social norm.
From this starting-point, the authors also make an estimate of how much tax is being evaded in Greece. The debt-to-income ratio for wage-earners in a particular profession ought to provide a guide (though not a precise one) to the debt-to-income ratio that banks are comfortable with for self-employed borrowers in the same profession. That assumption enables the authors to work out what multiples banks are applying to reported incomes in various industries; how much taxable income is not being reported; and how much tax is being evaded (see table). At an aggregate level, the authors calculate that the self-employed in 2009 dodged taxes on at least €28 billion of unreported income, enough to fill 31% of the Greek budget deficit that year.”
Why don’t you move to Somalia, Mexico, or any of those no-tax/low-tax countries? Based on your logic, the effective absence of taxes means that unemployment rates in these countries should be some of the lowest on earth, right?
FWIW, if you really don’t understand why we have progressive tax rates, you need to stop calling other people ignorant.
