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Old 12-01-2012, 01:54 PM  
woj
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Quote:
Originally Posted by crockett View Post
This is a pretty good article on who pays what.. with some nice pretty graphs..

http://www.cbpp.org/cms/index.cfm?fa=view&id=3505
we are discussing federal income taxes, so lets stick to that, that page is a bit too detailed and would take a whole day to analyze and comment on...


I found this instead:

http://www.nytimes.com/interactive/2...tax-rates.html

A liberal publication The New York Times shows that fourth quitile and lower income brackets pay on average 16% or less effective tax rate. Higher income brackets pay on average 21% or so.


So, what you claimed is indeed incorrect.


And that doesn't even take into the account the fact the the study is flawed, if you look carefully:
"Note: Payroll tax rates include taxes paid by employees and EMPLOYERS."


so each income bracket less than $108k should probably have 7.5% subtracted since they don't even pay half of the payroll tax, the employer covers that part... Not to mention that what they call "payroll tax" is social security contribution, which is debatable if it's a "tax" or more like forced saving for retirement... you might get good chunk of it back when you retire, so it's not 100% clear if calling it a "tax" is appropriate...

if you assume that it's not a tax, then fourth quintile and lower would pay nearly zero federal income tax...
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Last edited by woj; 12-01-2012 at 02:06 PM..
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