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TexasBushwhacker

(20,809 posts)
26. Yeah, $250K per year is upper class plain and simple
Sat Jan 16, 2016, 09:19 PM
Jan 2016

In fact, it puts a family in the top 3%.

And I tell you something. I make about $45K a year and I'm single. I don't have to support anyone but me and my cat. I look at my paycheck and I pay less than $70 a week into Social Security and Medicare. AND THAT'S NOT ENOUGH!

After the personal exemption and standard deduction, and if I don't put a nickel into my IRA, I pay a total tax rate of 10%. If it wasn't for the hundreds of billions wasted on the MIC, I would say RAISE MY TAXES.

I am lucky. I make close to the median household income and it's just little old me. I can live in a one bedroom apartment. My car is paid for. I realize that a family making my income would struggle, and I wouldn't dream of suggesting their income tax be raised. And I recognize that different states have different costs of living.

But let's look at a family if 4, 2 parents with 2 kid, making $153000. That's triple the median family income. They don't consider themselves rich. On the tax table they'll have SOME of their income in the 33% bracket. But after exemptions for each family member, just the standard deduction and the child care tax credit, they will ultimately pay less than 18% of their gross income in federal income tax. If they have more deductions through itemizing, their burden is even less. And if this family has a single breadwinner, they don't pay SS tax on the top 34K, reducing their SS tax liability to 4.8%. Of course earners who make more pay a smaller total percentage of their income to SS.

So yes, I think they could pay a little more. $153K gross income puts them in the top 8%. The $250K limit that Obama suggested is the top 3%. That's not too high, it's too damn low.

Personally, I think the capital gains rate should be raised to the regular income tax rates for higher incomes. And for higher incomes I think capital gains should be subject to SS and Medicare taxes as well. Of course the cap should be raised substantially and eventually eliminated. It makes sense to me to do these things first. THEN and only then, after getting military spending under control, we can talk about raising taxes on the middle class.

Recommendations

0 members have recommended this reply (displayed in chronological order):

Kicked and recommended. Uncle Joe Jan 2016 #1
Right on and straight to the heart of the matter dreamnightwind Jan 2016 #2
Yep I did. Thank you. n/t Tom Rinaldo Jan 2016 #5
No, thank you dreamnightwind Jan 2016 #7
Excellent essay, thanks for this. n/t A Simple Game Jan 2016 #22
K&R Paka Jan 2016 #3
You ought to submit this to a newspaper like the NYT as an Op-Ed column. Green Forest Jan 2016 #4
Thanks for doing that phonebanking Tom Rinaldo Jan 2016 #6
True. Green Forest Jan 2016 #13
That's a really good metaphor. nt thereismore Jan 2016 #8
That is one fine piece of writing you got there, Mr. Renaldo Luminous Animal Jan 2016 #9
I am and I will go look for it Tom Rinaldo Jan 2016 #10
HUGE K & R !!! - Thank You !!! WillyT Jan 2016 #11
K&R CharlotteVale Jan 2016 #12
One of your best, Tom! in_cog_ni_to Jan 2016 #14
K & R mog75 Jan 2016 #15
K&R down with 3rd way Katashi_itto Jan 2016 #16
K&R..... daleanime Jan 2016 #17
Excellent OP Tom especially the last paragraph. sabrina 1 Jan 2016 #18
K & R ! TIME TO PANIC Jan 2016 #19
I remember the first time I heard the frog in water thing, SheilaT Jan 2016 #20
" I honestly think the establishment simply has no clue at this point..." Tom Rinaldo Jan 2016 #21
The other huge problem is the whole SheilaT Jan 2016 #23
Well said. Tom Rinaldo Jan 2016 #24
knr Douglas Carpenter Jan 2016 #25
Yeah, $250K per year is upper class plain and simple TexasBushwhacker Jan 2016 #26
Kick for a great post. madfloridian Jan 2016 #27
Latest Discussions»Retired Forums»2016 Postmortem»The Frog in Boiling Water...»Reply #26