Redistribution of Wealth

[BeanCounter]

The fact of the matter is that the richest people in the country will have had a total tax break of about 5-6% of their income by the time the tax breaks expire in 2010. The upper middle class (where I am) on down to the poorest will have received a 1-2% cut.

Okay Steve let's talk tax breaks. If a person pays a 50% rate and gets a 10% reduction then he gets 5% less taxes. If a person only pays 16% in taxes then he would get a 1.6% reduction. Another case of the old adage that figures lie and liars figure.

[VRM]

Originally Posted by BeanCounter

Okay Steve let's talk tax breaks. If a person pays a 50% rate and gets a 10% reduction then he gets 5% less taxes. If a person only pays 16% in taxes then he would get a 1.6% reduction. Another case of the old adage that figures lie and liars figure.

Oh, yes, lets...

If a person in the 35% tax bracket gets a 10% reduction they will pay 3.5 % less taxes. A person in the 33 and 28% brackets will pay 3.3 and 2.8% less. So how does that turn into a 2% cut for me and a 6% cut for Bill Gates?

And we all pay SS taxes (6.2%) up to $95K or so. If I am in the 33% bracket I may actually pay a higher % of my income in taxes than somebody in the 35% bracket.

Steve