New ways the rich are hammered by taxes
The government is hitting the rich with more taxes, but is it fair?
This post comes from Maryalene LaPonsie at partner site Money Talks News.
It's tax time and that means the rich better get ready to open their wallets to pay even more this year. Depending on where you fall on the political spectrum, that's a bit of news that could have you cheering or grumbling.
5 ways the rich are getting hammeredThe tax code is ever evolving, and several provisions of the ironically named American Taxpayer Relief Act actually mean wealthy taxpayers are paying more.
Here are some of the new ways the rich may see their tax bill go up:
- Special tax rate for top incomes. The top tax rate used to be 35 percent, but the American Taxpayer Relief Act added a new rate for those earning more than $400,000 on a single return or $450,000 on a joint return. Make money above those amounts, and you'll be sending 39.5 percent of it to Uncle Sam.
- More capital gains tax. Most taxpayers will pay a 15 percent tax on long-term capital gains -- that is, profits made off the sale of investments held for more than a year. However, once you hit that $400,000/$450,000 income level, you'll start pitching in an extra 5 percent of your profits to the government. Individuals with incomes at those levels have a long-term capital gains tax rate of 20 percent.
- Medicare surtax. Sometimes called the Medicare contribution tax, this tax comes compliments of health reform. If you have an adjusted gross income of more than $200,000 on a single return or $250,000 on a joint return, you could get hit with a 3.8 percent tax on investment income such as interest and dividends.
- Medicare surtax for the self-employed. If you work for yourself and earn more than $200,000 or $250,000 on a single or joint return, respectively, you get to pay an extra 0.9 percent in Medicare tax. Lucky you!
- Pease limitation. Finally, the American Taxpayer Relief Act reintroduced the Pease limitation, a provision that had been eliminated by the Bush-era tax cuts. Named for the congressman who helped create it, the Pease limitation restricts the ability of wealthy taxpayers to claim certain deductions. For 2013 taxes, this provision kicks in once your adjusted gross income hits $250,000 for single filers and $300,000 on a joint return.
How much do the rich really pay?
Oh, boo hoo, you say. The rich have plenty, and they are always weaseling their way out of taxes anyhow, right?
How much in income taxes do the wealthy pay? CNN reported last year:
The top 10 percent of taxpayers paid over 70 percent of the total amount collected in federal income taxes in 2010, the latest year figures are available, according to the Tax Foundation, a think tank that advocates for lower taxes. That's up from 55 percent in 1986.
The remaining 90 percent bore just under 30 percent of the tax burden. And 47 percent of all Americans pay hardly anything at all … .
That's just federal income tax and doesn't include payroll tax for Social Security and Medicare (which the vast majority of people pay), plus state taxes and all of the other taxes we face. When you add them all together, using figures from the Tax Policy Center and the Institute on Taxation and Economic Policy, Josh Barro at Business Insider wrote:
Earners in the top 1 percent pay about 43 percent of their incomes in tax. People in the middle quintile pay 25 percent. The poorest fifth pays 13 percent.
Finally, before you assume these one- and 10-percenters are living on luxury yachts and in million-dollar mansions, consider how little money it takes to be a top wage earner. According to 2011 IRS data, the top 1 percent have adjusted gross incomes of $388,905 per year or more. To be in the top 10 percent, you need an adjusted gross income of just $120,136 or more.
Good incomes to be sure, but definitely not enough to be vacationing in Tahiti 10 months of the year.
What do you think about the progressive tax system? Is it right for the rich to pay more since they make more?
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article says....... that's a bit of news that could have you cheering or grumbling......ok, cheering if your a so called compassionate, tolerant, diversity loving low info libtard who hates the rich and business (the hand that feeds) or grumbling if your a common blue color guy and realize punishing the job creators never works in human history. Hows greece doing? Heres what one great leader has to say, history (info), as always a low info libtards worst enemy.
You cannot help the poor by destroying the rich.
You cannot strengthen the weak by weakening the strong.
You cannot bring about prosperity by discouraging thrift.
You cannot lift the wage earner up by pulling the wage payer down.
You cannot further the brotherhood of man by inciting class hatred.
You cannot build character and courage by taking away people's initiative and independence.
You cannot help people permanently by doing for them, what they could and should do for themselves.
Taxes on wages (in any form – flat or progressive) are the greatest evil of our American Republic. When government is free to steal from you, there are no limits to waste and abuse in government. If a person chooses to work extra hours or two jobs in order to better provide for themselves or their family, they should not be penalized, but that is what happens. The more you make by working harder and longer, the more money is stolen from you, and given to those who spend their lives living off the hard work of others.
The revenue the government needs to provide legitimate constitutional services should be obtained primarily from a national sales tax instead of a tax on wages. All would pay based on consumption, the more you spend the more you pay. The more luxury you surround yourself with, the more you pay. Your choice. A national sales tax system would capture money spent by criminals and by illegal aliens who currently pay near zero in taxes. There would of course need to be exemptions: Cars (already have a federal excise tax) Primary Residence/Rental Properties (vacation homes would be subject to tax/rental profit would be taxed) Fresh Food (Preprocessed foods and prepared meals would be taxed – only fresh/fresh frozen/canned goods would be exempt) Insurance Premiums, Health Care & Certified Education.
Adding another layer of tax to a business would not be fair. Businesses would need to be compensated by keeping a portion of the tax to cover the expense of collection and reporting. A percentage of .20 to .05 would be fair.
When Obama was first elected it was obvious to anyone with a lick of common sense that his goal was to "spread the wealth". He even admitted it.
This is particularly important to him as he sees it as a way for more money to go from Whites to most minority groups. While a limited number of Whites will benefit under this goal, make no mistake about its real intentions of income redistribution from Whites to minority groups.
Obama has no real knowledge on substantive issues that would lead to improvement for everyone but he fully understands race and class resentment and how to manipulate it for his own goals. Remember, he is from the Chicago school of politics and he was a good student.
It is a very well thought out plan that the MSM refuses to address and Republicans are afraid to address.
Another plan by the Democrats to kill jobs.
Everyone wants the rich ($250,000 is not rich) to pay a higher percentage of their income in taxes because they don’t think the rich pay enough. Well, how much is enough? If someone is paying hundreds of thousands if not millions of dollars in taxes already, why should they pay more? So what if it’s only 10, 12, or even 5 percent of their income. Why should someone who works harder and sacrifices more, pay more? It’s wrong, it’s unfair. Those paying millions are supporting those paying only a few hundred dollars. If that’s 20% of your income, maybe you just need to work harder? The rest of us are tired of supporting you. Would you rather have 10% of $100,000 or 5% of $250,000?
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