Does a secretary pay higher taxes than a millionaire?
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Obama didn't say that secretaries pay higher taxes than millionaires, although he left that impression
Now does a secretary usually pay higher tax rates than a millionaire?
The answer to that question is definitely not.
Most secretaries don't make that much. Salary.com put the average salary for an entry-level secretary at $33,249. The top marginal rate for the secretary would be 15 percent, and then typical deductions and exemptions would reduce the tax burden even more. If the secretary had children and no other income, the likely income tax burden would be zero.
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OK, so lets put that tired incorrect argument to rest.
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Which leads us to another fact-check of ours. We fact-checked Sen. John Cornyn, R-Texas, who said, "Fifty-one percent -- that is, a majority of American households -- paid no income tax in 2009." We rated that True.
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So, the majority of nouseholds in the US do NOT pay ANY income taxes. Something just seems weong with that conceptually.
Two down.
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Here's another accurate statement: The wealthy pay most of the income taxes in the United States.
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As they should ... three for three.
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Let’s say you’re a millionaire CEO, being paid a regular salary. In that case, you're paying the top marginal rate -- currently, 35 percent -- on everything you make above $379,150. (Earnings below that level are taxed at a lower rate.)
Numbers from the nonpartisan CBO show that the wealthy pay most of the taxes in the United States. In 2007, the top 10 percent of tax payers accounted for 72.7 percent of all income taxes owed. That top 10 percent included people making adjusted income of $102,900 or higher. Keep in mind, that top 10 percent accounts for 42 percent of all income earned. They paid an average tax rate of 26.7 percent.
Still, that doesn't mean all the rich were on the hook for that much. Again, because of the lower rates paid on capital gains and dividends, some wealthy people paid much lower rates than others.
"We estimate that nearly half of the benefits from the lower rates on gains and dividends goes to the top one-tenth of 1 percent of households," he said. That top one-tenth includes people with incomes of $2.3 million dollars a year or more.
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Therein lies the rub ... Capital gains and dividend income. Tax it all the same and solve that issue.
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But even the most aggressive tax increases on the wealthy would raise only $700 billion to $800 billion over 10 years, when the federal government needs to be considering deficit reduction of between $1.2 trillion and $4 trillion over that time period.
To achieve real savings, lawmakers need to look at tax code in its entirety, eliminating all sorts of loopholes and special exemptions, he said. And, they need to make reductions on the spending side, particularly on entitlement programs projected to expand due to an aging population.
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from here
Its time for lawmakers from both parties to stop doing what is in their own best interests and do what is right for the country, for a change.
Look at the deductions like those mentioned above, which primarily benefit only the uber-rich and eliminate them - NOW.