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Okay, I think most of us grasp that the proposal is that folks who make more than $250,000 a year will see an increase in their federal tax rate from 36% to 39% on the income above $250,000. So, for example, someone making $255,000 will have to pay $150 more in federal taxes. Yeah, $12.50 a month. And they're screaming about that. Can you imagine?
But now let's consider what our pals in the high income tax bracket don't pay. You and me, wage slaves that we are, pay into Social Security. On every dollar we make, we pay 6.2% to Social Security. Now, it's money well invested, and I fully expect to pull far more from Social Security than I ever put in.
Our wealthy pals? Well, they pay 6.2% on their wages, too. Up until, oh, $106,800. After that? They pay zip-a-dee-doo-dah Social Security tax. Do the math on that $255,000 income, and they're not paying $9,188.40 in Social Security tax. In fact, the amount they do pay is less than 2.6% of their income. Nice deal if you can get it, nu?
So, a person making $255,000 a year is not paying $9,188 in Social Security taxes, but bitching about paying an extra $150 (the disparity grows, of course, the higher the income). What is the proper response to such a person? The popular media seem to think they need to be heard from loudly and often so we can all feel their pain.
I have a slightly different response.
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