#### Dr.Who

##### Well-Known Member

Abomination- So why don't you tell us how much the rich pay in taxes. Not the per centage then pay of the taxes but how much they pay out of their earnings. That is if you are feeling so sorry for them.

Let's say for a start that the average CEO makes 200 times what his lowest paid worker makes and let's say that his lowest paid worker makes $30,000. So the CEO is making $600,000, and let's say he is paying about 20% in taxes because he gets lots of loopholes and tax dodges so he can keep the rest. He still keeps $480,000. So how many guys making $30,000 are going to have to pay 20% of their income which will reduce them to a paltry $24,000 so they will equal what the CEO paid in taxes?

That's real easy to figure out and it doesn't require any math, just in case you brain is already full. Now how fair is that?

The guy earning 600,000 will pay;

15% on the amount up to $42,350, or $6,352 plus

28% on the amount up to $102,300, or $28,644 plus

31 % on the amount up to $155,950 or $48,344 plus

and 39.6 % on the amount above $278,450 or $127,333

for a total of about $210,673.

http://www.wwwebtax.com/tables/tax_rate_schedules98.htm

Working backwards to find out what the average percentage is he pays about 35%

Does he get a bunch of loopholes?

Not really the alternative minimum tax eliminated most of those. There is one loophole that most rich people still take advantage of. That is the one that states that investment income is only taxed at 15%. In this example you stated that the income was earned so that is irrelevant. This loophole is actually one of the parts of the tax system that is fair because the low wager earner pays the same 15% on investment income as the high wage earner (think about your 401K or pension or whatever).

The guy earning $30,000 however pays 15% of anything over $0 ($4,500) plus 28% of anything over 42,350 (nothing) for a total of $4,500. He does not pay the alternative minimum tax so he gets to deduct his mortgage interest, a bunch per kid, his wife and himself as dependents. The amount he actually pays - about nothing.

It is not so easy to figure out, it does require math and it is not fair at all.

There is no way that the one guy who did nothing illegal or immoral should be punished by paying 35% of his income while the other guy who also did nothing wrong or immoral is punished less (or not at all) by paying nothing.

The laws are not being applied to these two individuals the same way.