From AP. Left some of the comments, these are as interesting as the article.
In my mind, Buffet is fast becoming the most dangerous man in the country.
FACT CHECK: Are rich taxed less than secretaries?
By STEPHEN OHLEMACHER - Associated Press | AP –
WASHINGTON (AP) — President Barack Obama makes it sound as if there are millionaires all over America paying taxes at lower rates than their secretaries.
"Middle-class families shouldn't pay higher taxes than millionaires and billionaires," Obama said Monday. "That's pretty straightforward. It's hard to argue against that."
The data tell a different story. On average, the wealthiest people in America pay a lot more taxes than the middle class or the poor, according to private and government data. They pay at a higher rate, and as a group, they contribute a much larger share of the overall taxes collected by the federal government.
There may be individual millionaires who pay taxes at rates lower than middle-income workers. In 2009, 1,470 households filed tax returns with incomes above $1 million yet paid no federal income tax, according to the Internal Revenue Service. That, however, was less than 1 percent of the nearly 237,000 returns with incomes above $1 million.
In his White House address Monday, Obama called on Congress to increase taxes by $1.5 trillion as part of a 10-year deficit reduction package totaling more than $3 trillion. He proposed that Congress overhaul the tax code and impose what he called the "Buffett rule," named for billionaire investor Warren Buffett.
The rule says, "People making more than $1 million a year should not pay a smaller share of their income in taxes than middle-class families pay."
"Warren Buffett's secretary shouldn't pay a higher tax rate than Warren Buffett. There is no justification for it," Obama said. "It is wrong that in the United States of America, a teacher or a nurse or a construction worker who earns $50,000 should pay higher tax rates than somebody pulling in $50 million."
Buffett wrote in a recent piece for The New York Times that the tax rate he paid last year was lower than that paid by any of the other 20 people in his office.
This year, households making more than $1 million will pay an average of 29.1 percent of their income in federal taxes, including income taxes and payroll taxes, according to the Tax Policy Center, a Washington think tank.
Households making between $50,000 and $75,000 will pay 15 percent of their income in federal taxes.
Lower-income households will pay less. For example, households making between $40,000 and $50,000 will pay an average of 12.5 percent of their income in federal taxes. Households making between $20,000 and $30,000 will pay 5.7 percent.
The latest IRS figures are a few years older — and limited to federal income taxes — but show much the same thing. In 2009, taxpayers who made $1 million or more paid on average 24.4 percent of their income in federal income taxes, according to the IRS.
Those making $100,000 to $125,000 paid on average 9.9 percent in federal income taxes. Those making $50,000 to $60,000 paid an average of 6.3 percent.
Obama's claim hinges on the fact that, for high-income families and individuals, investment income is often taxed at a lower rate than wages. The top tax rate for dividends and capital gains is 15 percent. The top marginal tax rate for wages is 35 percent, though that is reserved for taxable income above $379,150.
With tax rates that high, why do so many people pay at lower rates? Because the tax code is riddled with more than $1 trillion in deductions, exemptions and credits, and they benefit people at every income level, according to data from the nonpartisan Joint Committee on Taxation, Congress' official scorekeeper on revenue issues.
The Tax Policy Center estimates that 46 percent of households, mostly low- and medium-income households, will pay no federal income taxes this year. Most, however, will pay other taxes, including Social Security payroll taxes.
"People who are doing quite well and worry about low-income people not paying any taxes bemoan the fact that they get so many tax breaks that they are zeroed out," said Roberton Williams, a senior fellow at the Tax Policy Center. "People at the bottom of the distribution say, but all of those rich guys are getting bigger tax breaks than we're getting, which is also the case."
Treasury Secretary Timothy Geithner was pressed at a White House briefing on the number of millionaires who pay taxes at a lower rate than middle-income families. He demurred, saying that people who make most of their money in wages pay taxes at a higher rate, while those who get most of their income from investments pay at lower rates.
"So it really depends on what is your profession, where's the source of your income, what's the specific circumstances you face, and the averages won't really capture that," Geithner said.
3,518 comments
In my mind, Buffet is fast becoming the most dangerous man in the country.
FACT CHECK: Are rich taxed less than secretaries?
By STEPHEN OHLEMACHER - Associated Press | AP –
WASHINGTON (AP) — President Barack Obama makes it sound as if there are millionaires all over America paying taxes at lower rates than their secretaries.
"Middle-class families shouldn't pay higher taxes than millionaires and billionaires," Obama said Monday. "That's pretty straightforward. It's hard to argue against that."
The data tell a different story. On average, the wealthiest people in America pay a lot more taxes than the middle class or the poor, according to private and government data. They pay at a higher rate, and as a group, they contribute a much larger share of the overall taxes collected by the federal government.
There may be individual millionaires who pay taxes at rates lower than middle-income workers. In 2009, 1,470 households filed tax returns with incomes above $1 million yet paid no federal income tax, according to the Internal Revenue Service. That, however, was less than 1 percent of the nearly 237,000 returns with incomes above $1 million.
In his White House address Monday, Obama called on Congress to increase taxes by $1.5 trillion as part of a 10-year deficit reduction package totaling more than $3 trillion. He proposed that Congress overhaul the tax code and impose what he called the "Buffett rule," named for billionaire investor Warren Buffett.
The rule says, "People making more than $1 million a year should not pay a smaller share of their income in taxes than middle-class families pay."
"Warren Buffett's secretary shouldn't pay a higher tax rate than Warren Buffett. There is no justification for it," Obama said. "It is wrong that in the United States of America, a teacher or a nurse or a construction worker who earns $50,000 should pay higher tax rates than somebody pulling in $50 million."
Buffett wrote in a recent piece for The New York Times that the tax rate he paid last year was lower than that paid by any of the other 20 people in his office.
This year, households making more than $1 million will pay an average of 29.1 percent of their income in federal taxes, including income taxes and payroll taxes, according to the Tax Policy Center, a Washington think tank.
Households making between $50,000 and $75,000 will pay 15 percent of their income in federal taxes.
Lower-income households will pay less. For example, households making between $40,000 and $50,000 will pay an average of 12.5 percent of their income in federal taxes. Households making between $20,000 and $30,000 will pay 5.7 percent.
The latest IRS figures are a few years older — and limited to federal income taxes — but show much the same thing. In 2009, taxpayers who made $1 million or more paid on average 24.4 percent of their income in federal income taxes, according to the IRS.
Those making $100,000 to $125,000 paid on average 9.9 percent in federal income taxes. Those making $50,000 to $60,000 paid an average of 6.3 percent.
Obama's claim hinges on the fact that, for high-income families and individuals, investment income is often taxed at a lower rate than wages. The top tax rate for dividends and capital gains is 15 percent. The top marginal tax rate for wages is 35 percent, though that is reserved for taxable income above $379,150.
With tax rates that high, why do so many people pay at lower rates? Because the tax code is riddled with more than $1 trillion in deductions, exemptions and credits, and they benefit people at every income level, according to data from the nonpartisan Joint Committee on Taxation, Congress' official scorekeeper on revenue issues.
The Tax Policy Center estimates that 46 percent of households, mostly low- and medium-income households, will pay no federal income taxes this year. Most, however, will pay other taxes, including Social Security payroll taxes.
"People who are doing quite well and worry about low-income people not paying any taxes bemoan the fact that they get so many tax breaks that they are zeroed out," said Roberton Williams, a senior fellow at the Tax Policy Center. "People at the bottom of the distribution say, but all of those rich guys are getting bigger tax breaks than we're getting, which is also the case."
Treasury Secretary Timothy Geithner was pressed at a White House briefing on the number of millionaires who pay taxes at a lower rate than middle-income families. He demurred, saying that people who make most of their money in wages pay taxes at a higher rate, while those who get most of their income from investments pay at lower rates.
"So it really depends on what is your profession, where's the source of your income, what's the specific circumstances you face, and the averages won't really capture that," Geithner said.
3,518 comments
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Mr. Sarcastic aka Devil&# ... 6 seconds ago Report AbuseThe best way to raise revenue is to get people back to work and have them pay taxes. Bring overseas jobs back to American soil and cut the corporate tax so American Corporations can have an equal playing field similar to other countries. Impose import tariffs on all goods from countries that... MoreReply -
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nice 7 seconds ago Report Abuseffs get rid of income tax..tax breaks ect is making the country in debt ..maybe they should check to see how much they give back each year....Reply -
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MatchingMoles 7 seconds ago Report AbuseIt's just class warfare by scumbag Obama. He hates succesful people and wants to punish them for being succesful. If the wealthy want to pay more in taxes, like himself, then why don't they show leadership and send a big check to the government.Reply
People who make the least amount of money should... More -
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blaze1 8 seconds ago Report AbuseIt's funny how Warren Buffet shakes his finger at other rich people but himself admittedly pays such low taxes. What's his point in all this? Just to brag that he's a zillionaire who uses tax loopholes? If he really cared, he could voluntarily pay more taxes or not take advantage of the... MoreReply -
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Yikes 9 seconds ago Report AbuseThe working poor do not pay taxes because they get personal exemptions and standard deductions, but so do the wealthyReply -
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Patriot 9 seconds ago Report AbuseMiddle class apologists for the rich, now that's a feat. Once again, all you Retardican/Tea baggers whining about how the poor billionaires won't be be able to afford to pay what would still be a historically lower rate than at any other time in our history. Give me a break! The rich have been... MoreReply -
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B. H. Obama 11 seconds ago Report AbuseI wish OBAMA were black...................................Reply -
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Eva 11 seconds ago Report AbuseNothing will make me happier than watching the salesman fall. He has failed us miserably and intentionally. He's a liar and a fraud, he is not a patriot, and he will say or do anything for votes.Reply -
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Brian 11 seconds ago Report AbuseLower tax rates on billionaires means more vacation homes in Dubai, more money invested in China, and more money in off-shore accounts. Give the money to the poor and middle class and it will all be spent here in AmericaReply -
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Dude 11 seconds ago Report AbuseOK liberals, now that this article proves that your nemesis, the rich, do pay their fair share, will you now switch your mantra to tax the poor since they don't pay their fair share?Reply -
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Angela 13 seconds ago Report AbuseThis article is way off base! Bush gave the rich the famous "Bush tax cuts". These tax cuts have been around for 6 years now. Where are all the jobs that are suppose to happen when they pay less taxes?? The "job creators" have had this break for the past 6 years??? WHERE ARE THE JOBS?? Tax... MoreReply -
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Jason 15 seconds ago Report AbuseAnother purposely misleading article on the subject of taxes. Notice how the author intentionally buried the statement about investment income at the end of the story. This is how the elite rich make their money...and exactly what Obama (and Buffet) are attempting to call into question. One thing... MoreReply -
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David 15 seconds ago Report AbuseThe tax rates are high enough... We need to close loopholes so that people pay what they're supposed to pay. There are people who get tax refunds when they don't even pay taxes, and they're people who make millions that squeeze all they can out of the government to minimize the taxes they pay...... MoreReply -
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CommunityDisorganizer 16 seconds ago Report AbuseBOOO HOOOOO!!! I'm sorry that this article hurts your feelings. If you think Obama is not lying, I challenge you to go to the Tax Stats section of the IRS website and see the data for yourself.Reply -
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JohnU 16 seconds ago Report AbuseHey dummycrats make sure you read the article. It says that it INCLUDES payroll taxes. Quote: "including income taxes and payroll taxes, according to the Tax Policy Center, a Washington think tank."Reply -
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james 17 seconds ago Report AbuseTax loop-holes are designed to help those that can afford lawyers and the big corporations that pay to have congressmen in their pockets.. Loop holes also help the congressmen save money that they take under the table .. If tax laws were simplified the companies like H.&R. Block would lose... MoreReply -
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Dave 17 seconds ago Report AbuseTry doing the math, 46 million unemployed, 89 million retired, 69 million children in school, 48 million in poverty, man who is paying the tax bill, Hey Goverment instead of trying to play games why don't you just tell us that your out of money and you have know more and stop pointing fingures it... MoreReply -
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bluepeahen 23 seconds ago Report AbuseGOD only asks for 10%Reply
Why should we give more to the government? -
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shellwheel 25 seconds ago Report AbuseThe writer should look up capital gains and then write the article. The elite in this bracket dont make most of their earnings by working; they earn it by investments. And these investments are what are taxed at a much lower rate than the middle class.Reply -
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Scott 28 seconds ago Report AbuseFunny how many people in the comments have zero political experience, and probably hardly any experience with taxes beyond filing their own. But everyone seems to know exactly how to fix the problem with the economy and how to fix taxes. It's easy to be a couch politician. I think if everyone in... MoreReply
