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Report: 25 Percent Of Millionaires Pay Lower Taxes Than 10.4 Million Middle-Class Americans
By Tanya Somanader on Oct 13, 2011 at 11:05 am
President Obama’s “Buffett Rule” is aimed at ensuring that wealthy Americans pay their fair share in taxes. As it stands today, a wealthy individual can take advantage of preferential tax treatment of investment income and various tax loopholes to drastically lower his or her tax rate and effectively pay lower taxes than middle-class families. To prove the point behind his namesake, billionaire Warren Buffett revealed to Republicans yesterday that he made more than $62 million last year while only paying a 17 percent tax rate.
It is not surprising that Republicans like GOP candidate Mitt Romney who slam the Buffett Rule as “class warfare” simultaneously benefit from the same sort of preferential treatment. In fact, a new report by the non-partisan Congressional Research Service finds that 25 percent of the nation’s millionaires have a lower effective tax rate than 10.4 million middle-class Americans:
About 25 percent of millionaires in the U.S. pay federal taxes at lower effective rates than a significant portion of middle-income taxpayers, according to a legislative analysis.
Preferential treatment of investment income and the reduced impact of payroll taxes on high earners lets about 94,500 millionaires pay taxes at a lower rate than 10.4 million “moderate-income taxpayers,” representing about 10 percent of those making less than $100,000 a year, according to the report by the non-partisan Congressional Research Service dated Oct. 7.
In direct conflict with a favorite Republican talking point, the report also found that very few business owners are millionaires and “played down the impact of higher tax rates on job creation.” “The small share of taxpayers with small-business income in the millionaire category suggests that tax reform policies designed to ensure adherence to the Buffett Rule will affect few small businesses,” it said. This bolsters the claims from economists and business owners alike that higher tax rates on the rich make “zero difference” in hiring.
Numerous polls continually show that Americans support raising the tax rate on millionaires. But rather than raise the rates on those who should pay their fair share, Republicans respond with even more tax increases on the middle class. “Class warfare,” indeed.
-------------------- Wise men learn more from fools than fools from the wise. Posts: 3827 | From: beautiful California | Registered: Sep 2008
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it's also a myth that people won't work if they have to pay taxes. in fact? they'll work harder.
look at it this way. If someone CAN actually make more money hiring a worker? they will. that's the real underlying problem. It's more profitable to buy chinese made goods and import them than it is to hire an American. Now, that's cuz the Chinese workers don't expect to own a car, or even own a house in many cases. Alot of them live in dormitories provided (not free of course) by the employer. Most Chinese workers do not have health insurance either..
this is where we are headed in order to be able to "compete" with Chinese labor, and we have been headed there since we opened up trade with them. People say it was inevitable, but it was only inevitable if we allowed them "free" access to our markets, without them reciprocating which they most certainly have not.
I am now hearing the "trade war" scare tactics being brought out. They have not allowed US free access to their markets at all... as a matter of fact? most of the American businesses that went went there have kissed their azzes for access to their markets... i'll be happy to pay higher prices here if it means that unemployment dropped to 4%
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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of course we have known about the subject for years. And to the credit of the American working class they never made an issue of it as long as there were jobs and they could raise a family.
Now things are at a terrible time of of financial hurt and workers are taking a look at all of the unfair laws and favors of certian groups
-------------------- Wise men learn more from fools than fools from the wise. Posts: 3827 | From: beautiful California | Registered: Sep 2008
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quote:Originally posted by raybond: of course we have known about the subject for years. And to the credit of the American working class they never made an issue of it as long as there were jobs and they could raise a family.
Now things are at a terrible time of of financial hurt and workers are taking a look at all of the unfair laws and favors of certian groups
yeah, and suddenly it becomes "class warfare"?
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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quote:Originally posted by glassman: we've known this for years.
it's also a myth that people won't work if they have to pay taxes. in fact? they'll work harder.
look at it this way. If someone CAN actually make more money hiring a worker? they will. that's the real underlying problem. It's more profitable to buy chinese made goods and import them than it is to hire an American. Now, that's cuz the Chinese workers don't expect to own a car, or even own a house in many cases. Alot of them live in dormitories provided (not free of course) by the employer. Most Chinese workers do not have health insurance either..
this is where we are headed in order to be able to "compete" with Chinese labor, and we have been headed there since we opened up trade with them. People say it was inevitable, but it was only inevitable if we allowed them "free" access to our markets, without them reciprocating which they most certainly have not.
I am now hearing the "trade war" scare tactics being brought out. They have not allowed US free access to their markets at all... as a matter of fact? most of the American businesses that went went there have kissed their azzes for access to their markets... i'll be happy to pay higher prices here if it means that unemployment dropped to 4%
We can thank Bill Clinton for helping businesses show the chinese so much love.
-------------------- It isn't so much that liberals are ignorant. It's just that they know so many things that aren't so. Posts: 6949 | Registered: Apr 2004
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We can thank Bill Clinton for helping businesses show the chinese so much love.
Bill is the one who granted most favored nation status after critisizing Bush the First for "ignoring" Tienenman square. They've all done it, and that's why people are occupying wall st. I don't even see the occupy wall st folks as Obam supporters. they may be more inclined to vote for Obama, but they are protesting about his lack of action against the criminals too...
Romney is the only candidate currently taking a hard line on China. Obama is making some noise, but not enough IMO. Romney? I think he'll make as good president as Obama. He'll be differnt, and make different choices and therefore have different successes and failures, but i think he's the only one on the GOP side that can even do the job.. And i'm not sure he can get the primary votes cuz he's Mormon. Heck, i'm pretty tolerant & i have some issues about Mormonism particularly cuz it's so secretive.
Newt got on the stage this week and almost every statement was either a twist of the truth or an outright lie... Perry? He's even Dumber then Dubya...
i get annoyed with so much with the partisan attiudes- i can watch Fox news for a hlaf hour any day and hear them critisize Obma for stuff they would have cheered Bush for doing.. the latest is thir complaining about using drones to get terrorists...
the two parties are not very differnt. they do have some very loud an obnoxious extremists on each side who get catered to in primaries tho.. in the end? even the "socialist" dems are into making a buck as long as it is them making it
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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