How a janitor ends up with a higher tax rate than a millionaire, and seven more charts that show how the richest Americans beat the IRS.

[mawilson 2,133]

Is it 2013 already? Who won last November's elections? Tell me it wasn't The Donald...

Peepaca is the law of the land. If the goal was to fix the janitor-millionaire

payroll tax rate disparity by taxing passive income, it's already been done.

The numbers in those charts *probably* mix the income types for any meaningful discussion about income sources and comparisons about who pays more % or not. What is clear is that IF the numbers are for total income, THEN Steven's OP holds some water. We need someone to look at the 1040 instructions, line by line and get back to us.

I agree. The numbers provided are meaningless and cannot be independently verified.

[Mr. Big Dog 10,747]

If the goal was to fix the janitor-millionaire payroll tax rate disparity by taxing passive income, it's already been done.

Not completely. Passive income ought not to be taxed at preferred rates. Income is income is income.

[mawilson 2,133]

If the goal was to fix the janitor-millionaire payroll tax rate disparity by taxing passive income, it's already been done.

Not completely. Passive income ought not to be taxed at preferred rates. Income is income is income.

For payroll taxes, completely.

[Gary and Alla 3,694]

So why are you against the FAIR TAX? It would eliminate all this.

[SuperDuper! 230]

Another sensationalist and factually misleading article posted....The Fudge Report

[mawilson 2,133]

So why are you against the FAIR TAX? It would eliminate all this.

I have several problems with it.

First, things will become expensive. Even though people (and corporations) will have more money in their pockets, prices of goods will rise.

Second, I don't know how the Fair Tax addresses the problem of buying products from other countries. Are they going to increase tariffs on international products? Or do you expect foreign vendors to collect the tax on behalf of the US government?

[Mr. Big Dog 10,747]

For payroll taxes, completely.

Payroll Tax Increase - Medicare portion of payroll tax will rise from 2.9% to 3.8% for individuals making $200,000 or more and for families making $250,000 or more. Therefore, your employer will continue to pay 1.45%, but for the employee they will pay .9% more. The self-employed (with applicable income thresholds) will pay .9% more (2.9% to 3.8%). This takes effect in 2013.

Investment Income Surtax- Generally, there will be a 3.8% tax on investment income for households with net investment income that contributes to a taxpayers's modified adjusted gross income exceeding $200,000 (threshold amount) for singles and $250,000 for married couples. Next investment income includes rents, dividends, capital gains, royalties, annuities, and passive income. This becomes effective for taxable year 2013.

6.2 + 1.45 = 7.65

7.65 > 3.8

Edited April 19, 2011 by Mr. Big Dog

[mawilson 2,133]

6.2 + 1.45 = 7.65

7.65 > 3.8

Now you're just annoying me.

If you're one of those guys who want to lift the cap on Social Security taxes, you can go and suck a big one.

[Rebecca Jo 1,962]

The interesting part about it, is the Janitor is also more likely to use more government services than the "super rich" individual.

What makes you think that a person earning $33K is going to be able to use "government services"? I assume you mean Medicaid, food stamps, subsidized housing and other similar programs.

Are you independently wealthy, Paul? Because you seem to assume that the working class are all sucking off the government teet. Our guy in this example makes too much money to qualify for government assistance.