I always get into tussles on message boards with people who claim that rich people pay the most taxes. Yes they pay DOLLAR wise the most taxes, but Percentage wise the middle class pays the most taxes. How is that possible???? Warren Buffet has bet $1 million dollars that you couldn't find a rich person in America who pays more taxes than their subordinates! Yes I've been supported in my statement finally.
Yes! He gets what I've said for years. Rich people shelter money, get paid the "right" way and know how to pay the least % of taxes for income. However a DINK couple who make $100k pay more than average than the rich person. Buffet personally only pays 17% federal income taxes on $46M last year. How much did you pay? On our income we paid more than that!
Yep, the middle class people pay the most taxes. Why? How? They don't get deductions like rich people. They don't donate millions either. But there is a big difference between making $100k/year and $1M/year.
One major sore point with me is the Social Security Tax. The taxes on SS is capped at $97k. So someone like Buffet who made $46M would have had to have paid 6.5% on 46M if there was no cap. Well maybe if that happened SS would be solvent!
Another issue is they tax capital gains/dividends at 15%. So if you are rich (millionaire status) and you live only on your interest, dividends you are only paying 15% at most. Wowsa! Imagine that! You can draw $100k from a portfolio and only pay 15% instead of say 25-28%! What an awesome deal.
I guess for everyone out there who hates paying taxes think well maybe there is something to feeling overtaxed. Because the lower classes pay a bigger percentage of their incomes in taxes. Although someone making $50k with 2 kids doesn't, but someone making $120k with 2 kids often has phased out tax breaks. So that person's real tax rate is very high.