Monday, March 12, 2012
"Why do millionaires pay a lower tax rate?"
Our tax system is really convoluted, impossible to understand completely, and badly in need of an overhaul.
That being said, I wouldn't be surprised if it's purposefully that way to keep the average person in the fog...
That being said, I wouldn't be surprised if it's purposefully that way to keep the average person in the fog...
The Associated Press' Stephen Ohlemacher includes this in a recent article on the subject:
"McBride says it is unfair to tax income more than once, and capital gains are taxed multiple times. If you got the original investment from wages, that money was taxed. If the stock you own gains value because the company you invested in makes a profit, those profits are taxed through the corporate tax. And if that company issues dividends, those are taxed as well.
Lots of people are double taxed, says Chuck Marr, director of federal tax policy for the liberal Center on Budget and Policy Priorities. 'Check out your last pay stub: There's income tax and payroll tax, so you're double taxed, too,' Marr said.
And, he noted, when you buy something, you probably pay a sales tax."
