Saturday, December 04, 2010
Numbers and math used to make me cry, and I still don't particularly like them, but for some reason, percentages make sense to me. That's the only kind of math that I find to be useful. That said, I've been following the debate over keeping the tax cuts. Both sides want to keep some cuts, but the left doesn't think the wealthy should get to keep their cuts. They want to redistribute the wealth. I can see the sense in that. I mean, a person only needs so much money to live off of, right? So this all made me curious. I wanted to know what percentage of my income is taxed anyway, and what the difference is as the brackets go up to the higher incomes. Alright. Of my taxable income, I pay 12.75% of it to the feds. If you look at my gross income, the percentage is 8.47% paid to the feds. That makes more sense and sounds a lot better, so why all the paperwork to lower my taxable income just to raise my percentage paid? Do they really think we're that dumb. Alright. The answer to that is, of course, yes. Moving on. So take someone making almost $100,000 a year in taxable income. That is not me, for sure. Anyway, the math says they're paying 21.59% of their income to the fed. Yeow. That's 8.84% more than what I pay! The current debate for those making more than $250,000 a year, which isn't shown on the handy chart, so I can't tell you what percentage they're paying, but the pattern tells me that it's more than 21%. So. What's my point. Well, even without the issue of those making over $250,000, it's still a flawed system. A flat percentage for all would be the American way. And they should tax the gross income, not the twisted, paperwork-mired "taxable" income, whatever that means. The arguments could end, and the economy would...well...probably stay right where it is, because income tax isn't really much of an issue with that. But private sector jobs MIGHT pick up a little. But really the economy isn't my concern. It's about fairness and justice. Sure, it's fair for everyone to have the same amount of spending money. But life's not fair, but it's not too lake to work for justice. I could probably live off of half of what I earn now. If I did, my tax rate would be 2.35% less. At that rate with my current income, I would be paying $55.32 less to the feds. That's not much, I suppose, but that money would be mine if my rate was 10.4% instead of the 12.75% that it is, just because I make a lil more than I "need". I'm just ranting is all. To those making more than $250,000: I'm on your side. Down with the machine.