How The Rich Pay Less Tax Than the Poor

The rich in concert with the politicians have pulled off some sleight of hand so that the wealthy pay a lower tax rate than ordinary folk. Here is how they did it. There are so many loopholes in the income tax laws put there by legislators for their patrons that the rich can pay no tax at all if they choose, or even receive money. Few elect to pay more than 15%, the rate ordinary folk pay. However, ordinary folk are also subject to two additional payroll taxes, one 6.2% hidden, nominally paid by the employer out of the same pool of money used to pay wages and one explicit at 4.2% paid by the worker. (The Republicans plan to raise the latter to 6.2%.) Rich people effectively don’t pay payroll taxes if they are self-employed or even if they make $5,000,000 a year employed as a CEO (Chief Executive Officer) because the payroll taxes only apply to the first $100K of income.

~ Roedy (1948-02-04 age:70)