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To: Red Jones
But it seems that the most heavily taxed people draw a paycheck at between 70,000 and 87,000 a year. These people pay the payroll tax at its' full rate, then they pay income tax on the same income. They're still double-taxed unlike dividend income earners. Paychecks above 87 grand don't pay payroll tax on the amount above 87 grand. So, their marginal tax rate goes down quickly.

This is total crap. I suppose you are talking about the upper limit on income for the Social Security tax. That is NOT the income tax. If you want to talk apples, stick to apples.

34 posted on 02/04/2003 10:53:48 PM PST by John Valentine (Living in Seoul, and aware of the threat.)
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To: John Valentine
I read an analysis here on FR recently, I think it might have been from Time mag. It said the people who faced the highest marginal tax rates when they increased their income was people who make paychecks at 87 grand for precisely the reasons I mentioned. People who pay only income tax, but make over a 100 grand, frequently are able to have their tax accountants arrange things so that they end up paying a smaller actual overall federal tax rate than people who pay both payroll and income taxes and make 70-80 grand. You have to include employer paid tax and employee paid tax for payroll taxes and that's 15.5% total. Then, you gotto remember that they're double taxed on that income too. The things I'm speaking of are no secret. But I admit I'm not a tax accountant.
36 posted on 02/04/2003 11:11:36 PM PST by Red Jones
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To: John Valentine
the upper limit on income for the Social Security tax. That is NOT the income tax

oh now I understand what you're saying. You are actually saying that the payroll tax is not a tax. Republican robots frequently can't think. Let me explain. The federal government collects about 35% of its' revenue from the income tax. It collects about 25% of its revenue from the payroll tax. Some people have to pay both the payroll tax and the income tax. Some people don't. There are other taxes and fees too that the government collects besides payroll and income tax and those are real taxes too. If you want to actually measure the tax rates that people pay, then you have to add up all of these various taxes and divide by total income of the individual.

37 posted on 02/04/2003 11:24:29 PM PST by Red Jones
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