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Your numbers for SS and medicare are off.
Assuming worst case (highest tax) – which is for someone self employed. Self employed folks pay both employer and employee side of SS payroll tax.
Your 40k earner would pay:
10.4% * $40k = $4760 SS tax.
Your 400k earner would pay:
10.4% * $106,800 = $11,107.20 SS tax.
(ss payroll taxes are capped at the first 106,800 of payroll income)
Medicare also seemed off.
Your 40k earner would pay
2.9% * 40k = $1160 medicare taxes
Your 400k earner would pay
2.9% * 400k = $11,600 medicare taxes
If they are an employee – it will be less since the employer will pay a big percentage of the SS tax.
Medicare is a flat tax – so you can’t make any argument about the high earners being unfairly taxed. Flat is flat. 2.9% on all earned income.
SS is a regressive tax – higher earners pay a lesser overall percentage because only the first $106k is taxed… People making less than $106,800 pay the tax on their entire income.[/quote]
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I got my numbers off this site directly:
Regardless, people who make over $250k ALREADY pay way too much tax IMO as it is, and they shouldn’t have to pay more. They already pay WAY more then their share. The Fed and State Governments shouldn’t heap all the burden of our current debt & entitlement woes on this small group of financially successful people. If Obama raises the top bracket to 40% federal & you combine fed + state income taxes post prop 30, CA high income earners are going to be paying taxes close to European countries. And for all that tax we don’t get sh*t for services in the U.S. or Ghettofornia. At least in Europe you get something for being skinned alive by the Government.
Chuck Schumer one of the moderate democrats (and often voices of reason) in congress even said Obama should not consider $250k rich, he said it should be $1 millon+. Wow, someone with some common sense in congress!
