post #21 of 21
NAK= nursing at keyboard. I put that to explain my lack of punctuation/capitalization

Quote:
Tiredx2-- I am confused by your point. Are you saying that the rich pay less $ wise in payroll taxes than the working poor? (Yes I know they pay less percentage-wise, because it's capped.) Also, how can the working poor pay moreproperty taxes than the rich if they don't own any property?
Yes, the rich of course pay less money in payroll taxes, both as an absolute number (because there are so many more "poor") and as a percentage of their income (because it is a percentage only until the cutoff of around $85K, meaning that a person making 15% is paying 8.6/17.2% social security while a person making 850K is effectively only paying .86/1.72% social security. the same for other payroll taxes). The working poor pay more property taxes than the rich because they pay them through rent (included with rent, the landlords include that as an expense meaning the rentors are actually paying the property tax) and because property taxes are regressive (the poor spend a larger percentage of their income on housing costs than the rich, meaning that they are spending a larger percentage of their income on the property taxes that go with it.). It is logical why there is--- A person making 500K a year can generally "get by" with a 500K house (therefore paying appx 5K of tax deductable property tax, only 1% of their income) but a person making 10K probably can not "get by" with a 10K house (or the equivalent rent payment, $60, lol) and that tax payment will probably not be tax deductable for them (if they are renting because the landlord takes it as a business expense, if they own because it would not be enough to make it over the personal exemption level.

I do not actually know the % of total taxes paid by each social group (rich, middle class, poor, etc...) but I would be very interested to know. Given how many taxes that are regressive (property tax, sales tax, payroll taxes, etc...) and how few or progressive or stagnant (even the income tax, supposedly progressive often doesn't work that way because of available deducations). Because the rich are so very rich, I would not be surprised if they still paid a majority of the taxes, but as El's said, it would be interesting to *know.*

Now, this has gone fairly off basis and I think many definitions of "millionaire" are quite odd (though I did notice they didn't count retirement savings which means these people do have quite a chunk of change lying around), but the fact remains: the devide between the have and the have nots is a veritable chasm at this point. I don't know how to do it, but this country needs to make some serious decisions about what people "deserve" simply for being born in such a wealth country and what divide is acceptable and what divide is not). I, personally think that we need to INCREASE inheiratance tax (well, actually *decrease* the levels at which it kicks in and make it graduated), increase the level of mandatory social programs (health care, housing, and the like), mandate a floor for payroll taxes, increase the tax current top tax rates & add additional tiers (for example, if you make over $500K 40%, over $1mil 50% etc...).

Theres my rant and I'm sticking to it.

Kay