josebach wrote:bleach168 wrote:josebach wrote:bleach168 wrote:So is it fair that Bill Gates pays 1% income tax and I pay 100% income tax? I mean, after all, Bill Gates is still paying more tax than me so it he is shouldering so much burden, right?
Some people are talking percentages and others are talking aggregate sums. Please note the difference.
Note what difference? The rich pay a higher percentage and a higher aggregate sum. You know what a tax bracket is, don't you?
BTW, this Bill Gates fellow you mentioned... is one of the greatest philanthropists the world has ever seen monetarily speaking.
On the other hand, if I paid 100% income tax like you, I would probably be pretty pissed too.
Answer this. If I make $5 million in the stock market but otherwise unemployed, what tax bracket am I in?
I can only assume by your last couple posts that you're young so I won't be a jerk. Money earned in the stock market is taxable income and is subjected to federal income tax.
The lowest tax bracket pays roughly 10% federal income tax. If you're in this tax bracket most of the federal income tax you pay (if not all) will be returned to you after filing your tax return at the end of the year. (There are other taxes and deductions such as social security that are not refunded) Some states also charge a state income tax in addition to the federal income tax. Florida, fortunately does not.
Without any deductions and having a filing status of single, federal income tax on $5,000,000 would be roughly: $1,730,470.
Fantasy baseball is a lot more fun to discuss than this crap. I think I'll stop now.
oh good. then this will be the last correction i'll have to make on this subject.
money earned on stocks is capital gains, which is subject to federal income tax, but at the capital gains rate, which is much lower than the highest margin income rate. this assumes, however, that the money is not shielded/sheltered... which becomes less of a sure assumption the higher you climb up the wealth (not income) ladder. there's been a couple of high-profile cases lately such as:
http://money.cnn.com/2005/07/12/pf/taxe ... lter.reut/
and this is on only on an appreciated asset once you have actually sold such asset. for a family business which simiply grows and grows in value, and you continue to hold, you never pay any tax on it (since you've never cashed out and so never "earned" anything on it... although you could easily use it as collateral on a loan).
and again, this also ignores the bevy of taxes such as sales taxes (want an article on the wealthy not paying sales taxes? here you go. http://dks.thing.net/NS-HaboltPleadsGuilty.html) and social security which caps out at a point above your low-level wage earner so the true, effective tax rate paid by the lower class / working poor is really much higher than that of the wealthy.
and if you're now done with this, then so am i. and by the by, you can also find somewhere else in this thread where i was called, "the typical heartless republican."