Aethereal Posted October 30, 2023 Posted October 30, 2023 Quote Conservatives claim the wealthy are overtaxed. But the overall share of taxes paid by the top 1% and the top 5% is about their share of total income. This shows that the tax system is not progressive when it comes to the wealthy. The richest 1% pay an effective federal income tax rate of 24.7%. That is a little more than the 19.3% rate paid by someone making an average of $75,000. And 1 out of 5 millionaires pays a lower rate than someone making $50,000 to $100,000. https://americansfortaxfairness.org/tax-fairness-briefing-booklet/fact-sheet-taxing-wealthy-americans/#:~:text=to the wealthy.-,The richest 1% pay an effective federal income tax rate,someone making %2450%2C000 to %24100%2C000. This is disgusting. I was expecting something like 35% for billionaires. (Ideally it should be 70% though) What are your thoughts?
Devin Posted October 30, 2023 Posted October 30, 2023 disappointed but not surprised, billionaires should pay A LOT more.
family.guy123 Posted October 30, 2023 Posted October 30, 2023 Didn’t read the article but income taxes are based on annual income, not wealth. Whether someone is a “millionaire” or a “billionaire” has nothing to do with how much taxes they pay in a year so sentences like “And 1 out of 5 millionaires pays a lower rate than someone making $50,000 to $100,000” Are kind of misleading there’s nothing to suggest millionaires aren’t making between $50k-$100k per year. Could be wrong though since I’m ignorant on the American tax system but I’m going to give my opinion regardless
byzantium Posted October 30, 2023 Posted October 30, 2023 6 minutes ago, family.guy123 said: Didn’t read the article but income taxes are based on annual income, not wealth. Whether someone is a “millionaire” or a “billionaire” has nothing to do with how much taxes they pay in a year so sentences like “And 1 out of 5 millionaires pays a lower rate than someone making $50,000 to $100,000” Are kind of misleading there’s nothing to suggest millionaires aren’t making between $50k-$100k per year. Could be wrong though since I’m ignorant on the American tax system but I’m going to give my opinion regardless Yeah but presumably they would only be looking at income for calculating the “effective tax rate”. I agree with you in the millionaire point. Like if you are 50, own a home and have been saving for retirement, you could very likely be a millionaire based on having a median income.
ATRL Moderator Bloo Posted October 30, 2023 ATRL Moderator Posted October 30, 2023 It's important to note that these numbers are just federal come tax. Billionaires don't make most of their money from income or salary (i.e., income/salary are not the same thing as wealth). They effectively pay much less in taxes than working class people. Also, it surprises no one that the rich don't pay their fair share.
What_A_Mess Posted October 30, 2023 Posted October 30, 2023 As they should. Everyone should pay the same percentage
DAP Posted October 30, 2023 Posted October 30, 2023 The focus should not be on income for billionaires but capital gains, since this is how they amass their fortune. They pay even less thanks to “tax avoidance” schemes and loopholes that preserve their assets unless they sell it, and even then the profit they make selling stocks or treasury bonds or property is taxed less as a percentage than wages or salaries. This is why the distinction between income and wealth must be made to see the full picture.
ATRL Moderator Bloo Posted October 30, 2023 ATRL Moderator Posted October 30, 2023 2 hours ago, What_A_Mess said: As they should. Everyone should pay the same percentage Quite the opposite, actually.
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