tag:blogger.com,1999:blog-2836339018444123313.post705314472761059047..comments2023-09-14T21:37:39.544-07:00Comments on U.S. Budget and Economy: Do Only The Rich Pay Taxes?R Davishttp://www.blogger.com/profile/00681139511824861368noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2836339018444123313.post-12691658171047068532016-01-09T02:56:49.745-08:002016-01-09T02:56:49.745-08:00So your top 1% (lower end, $364K) pays about 23% i...So your top 1% (lower end, $364K) pays about 23% income tax and 5% FICA (15% but only paid on the lower third of income) or 28% total. Someone making $90K pays 15% FICA (and research has shown that even if the employer pays half, that still comes out of the worker's pay) plus 13% income tax or the same 28% total federal tax, despite having only a quarter of the income. <br />When FICA was started, the high end incomes were taxed at over 70% so a cap on FICA seemed reasonable. Something is badly wrong when the people with much lower income are paying as high (or higher with capital gains) a tax rate. And the bottom end has no disposable income anyway, a much higher percentage of their income going to sales taxes on food and children's clothes, and other ad valorem taxes. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2836339018444123313.post-29525714393861031282009-02-08T09:56:00.000-08:002009-02-08T09:56:00.000-08:00Your points regarding the difference between measu...Your points regarding the difference between measuring income versus wealth are seldom stated but very important. You're obviously not a conservative as I am so please allow me to share with you some perspective.<BR/><BR/>My wife and I earn well over $200K per year annually through ordinary income (a paycheck). If we lived in North Dakota we might be able to consider ourselves "rich" but since we live in California where our one bedroom condo cost us over $400K even a six figure salary doesn't go very far. We also have the privilege of being in the "top 5%" of income earners and the associated high tax rate but without any of the tax strategies available to a business owner or those that gain income through capital gains. We live a very modest life in our condo and instead of blowing money on expensive cars, vacations, or toys we save it. If we do lose our jobs, get sick, etc. we have sacrificed "immediate gratification" so that we don't have to depend on other tax payers to pay for the things for which we should and do take responsibility. So in essence we pay the most taxes and because we are responsible we use the least government services. There is no bail out for people like us who do the right thing - only to reward bad behavior and poor choices.<BR/><BR/>I'm just trying to make a point that having a higher than average salary, one that even falls into the top 5% does not make you rich. High net worth not income makes you rich. I am also making the point that most people are in the situation they are due to the choices they make. Obama has proven the conservative mantra that anyone can be a success in this country regardless of background or "at risk" environment. It just takes a lot of hard work - not a government program.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2836339018444123313.post-61872453619164614792008-08-22T00:28:00.000-07:002008-08-22T00:28:00.000-07:00Thanks for the comment. You can find responses to...Thanks for the comment. You can find responses to some other prior Rush articles at <A HREF="http://home.att.net/~rdavis2/rush.html" REL="nofollow">http://home.att.net/~rdavis2/rush.html</A>.R Davishttps://www.blogger.com/profile/00681139511824861368noreply@blogger.comtag:blogger.com,1999:blog-2836339018444123313.post-39045866611220441422008-08-20T20:57:00.000-07:002008-08-20T20:57:00.000-07:00Best explaination I've read. I've always known Rus...Best explaination I've read. I've always known Rush was a liar, and now you've proved it in black and white. Thanks.Anonymousnoreply@blogger.com