Hope I am not violating a rule, but I want to be sure everyone

[JDPriestly]

sees the following post.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x9055979

It is about how the "your Social Security retirement funds have been spent" lie is a way to force poor and middle class Americans to pay higher tax rates than the wealthy. Fie on all their houses.

[Catherina]

1. Thank you n/t

[midnight]

2. I don't know if I understand why those who make less pay a larger fed. marginal tax?

"This can be illustrated by the fact that the highest marginal tax rate if felt by a middle class American earning $106,800/year. This middle class American pays a marginal income tax rate of 28%, plus FICA tax of 12.4% (whether this is paid as a 12.4% self-employment tax, or as double 6.2% deductions from wages, the tax burden is identical) and Medicare tax of 2.9% on his/her entire income, for a total federal marginal tax rate of 43.3%.

Meanwhile, those in the supposedly top tax bracket (earning over $373,650/year in regular earned income) pay a marginal income tax rate of 35%, but have a 2.9% Medicare tax and zero% FICA tax on income over $106,000, thus yielding a total federal marginal tax rate of 37.9%.

(And at the same time, interestingly, an American trust fund baby with an income of $1,000,000/year consisting totally of long term capital gains pays a 15% capital gains tax, zero FICA tax, and beginning in 2013, a 3.8% Medicare tax, for a total federal marginal tax rate of 18.8%.)"

[unblock]

3. meaning, you don't understand the math, or you don't understand the politics?

the math is simply that the tax on social security drops to zero once you hit the $106,800/year limit. so anyone who earns above that amount gets a tax break on the income beyond that amount.

the politics is basically that the rich control the government and have created and preserved a nice break for themselves and are not about to give it up.

oh, wait -- were you looking for some kind of logic or justice in this? sorry....

[Raster]

4. That 'bout sums it up... part of the Raygun "Save the rich" non-tax package.

Along with "tinkle down." May the Great Bullshit Artist fry in hell.

[shraby]

5. This is a big spot where the media is failing the citizens...and

not being the watchdogs and truth-tellers on congress. That's why they are in the first amendment..to keep tabs on what the ordinary citizen doesn't have the resources to do.