Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: yefragetuwrabrumuy
NOT ONE of the 65+ year-old people that I know don't pay income tax. So scratch that 13.1%
35 posted on 02/22/2012 7:23:11 PM PST by EnquiringMind
[ Post Reply | Private Reply | To 18 | View Replies ]


To: EnquiringMind

I have to quibble a little bit about 65+ paying Income Tax, because typically that is usually not Income Tax per se, but capital gains tax. That is, unless they are still employed.

This confuses things somewhat, because IT and CG, while on the same form, use very different rules and function independently from each other. With congressional approval the CG rate can jump up or down almost whimsically, but it is a huge effort to change the Income Tax brackets.

For example, with the economy in downturn this year, CG has just plummeted. No profits, no taxes. So even if someone is a multimillionaire, and ordinarily would have substantial CG, they wouldn’t pay much of anything. But to say that they are not paying “Income Tax” creates a false impression.


76 posted on 02/23/2012 7:20:24 AM PST by yefragetuwrabrumuy
[ Post Reply | Private Reply | To 35 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson