@Baldimo,
Baldimo wrote:
That is some BS reasoning. Those already at the bottom pay no federal income tax when the tax man comes calling at the end of the year. How many of them in fact get more back than they pay in?
As a percentage of income, the working poor pay the highest
rates in our society. You are correct that they don't pay federal income tax, but they do pay social security tax, medicare tax, gasoline taxes, property taxes, utility taxes, etc. There was a famous quote a few years ago from Warren Buffet that he pays a higher tax rate than his secretary and that is true.
When Romney released his tax returns while running for President, I opened them up and compared them to mine. Romney paid $1.5 million in taxes, far more than me, but the
rate he paid was around half of mine. For example, Romney pays no social security tax. (The typical US worker pays 7.65% SS + medicare and their employers pay the same on their behalf, so over 15%.) While Romney consumes more than I do, things like sales tax, property tax and utility taxes do not scale with income (the definition of regressive taxes.) As a result his overall, all in tax rate was around 14% of his $15 million income. Sure, that is a lot, but someone making $40K a year who pays 25% should not be sympathetic about Romeny's federal tax bill. That $10k they contribute in state and local taxes and fees hits a lot harder than Romney's contribution. I doubt that if Romney paid another $1 million in taxes his standard of living would be impacted in any way.