One In Four Millionaires Pays Lower Taxes Than The Median Middle-Class Household

[cal04]

http://thinkprogress.org/economy/2011/09/21/325166/one-in-four-millionaires-lower-taxes-middle-class/

Republicans, aided by a misleading Associated Press “fact-check,” have been casting aspersions on President Obama for claiming that many millionaires pay lower taxes than middle-class households. But as the Tax Policy Center noted, one in four millionaires has a lower tax rate (accounting for federal income and payroll taxes) than the median middle-class households. Center for American Progress Director of Tax and Budget Policy Michael Linden added that 10 percent of people making between $10,000 and $20,000 annually actually pay higher tax rates than 25 percent of millionaires. More than 40,000 millionaires pay 4.2 percent or less of their income in taxes,

http://www.taxpolicycenter.org/numbers/displayatab.cfm?DocID=3204


http://twitter.com/#!/TaxPolicyCenter/status/116561539246469122

[TwilightGardener]

1. My local ABC affiliated radio news station (which runs RW talk programming)

had ABC's Ann Compton on this morning for a "fact check" as well, to defend the poor millionaires, which "ONLY" number around 230,000. Concerted effort going on in the media to protect the wealthy's assets and tax rates.

[hedgehog]

2. Going by the tax rate is misleading with these amounts of money.

A person making $10,000 pays $100 for every point in the tax rate.
A person making $1,000,000 pays $10,000.

That sounds terrible, doesn't it?

But if the person making $10,000 pays a 6% total (social Security only), that leaves $9,400 a year or $25 a day.

If the millionaire pays 50%, that leaves $500,000 or $1400 a day.

Somehow I think the millionaire can get by just fine!


Edit: the real focus should be on the fact that by taxing an amount of money that will make no significant change in life style for millionaires, we bring the country out of recession and deficit!

[truedelphi]

3. The other point that isn't made - by running a business, the millionarire has

Holdings that are created by him or her in part to avoid paying taxes on those purchases.

Case in point: if a family of four that makes 62K a year, buys Junior a $ 2.5K computer, they have paid taxes on that amount.

A millionaire buys a $ five k computer for business use, they pay taxes on none or only a small amount of that purchase price.

And a computer is the least of it, as millionaires own second and third homes they rent out, they own several cars, often one or two for business purposes. And even entire apartment buildings and other real estate.



.

[dkf]

4. Maybe their income is in muni bond interest which translates to lower interest costs to the states

And then lower taxes to the taxpayer.

[Scuba]

5. K&R

[Starry Messenger]

6. k&r

[HappyMe]

7. k&r nt