Oh yes, once again we're seeing the pundits smother us with one liners and headlines news which makes the average person sick to their stomach. In fact, middle class America, if it still exists, must be ready to hang up the towel once again and jump on the entitlement bandwagon. The rich pay 15% and I pay 28 to 35% of my combined income over 100K. Something is wrong with this scenario, and our brilliant President sees it and intends to expose this phenomena and bring fairness back to the people. Mr. President, what we would do without your vast understanding of taxes and capitalism? We need you to keep exposing the rich as the evil-mongers of greed who benefit in an unfair tax code slighted towards those who are advantaged. Is everyone on board now? Are we ready to kick some rich people's asses?
OK. Now here is the real story on taxation. Romney or any other self-made American citizen, pays ordinary income taxes on original dollars earned. That means his bracket of taxes were most likely in the +35% range, not including state of Massachusetts income tax (5%). He also pays the social security/medicare tax of 7.2%, and as an principal of Bain Capital had to match that tax to the feds. Therefore, before accumulating any retirement principal, he had already paid 35 +14.4, plus five percent, or 54.4% on his earned income.
That's got to sound pretty good to the 53% of us who pay 15-35% on earned income. The other 47% who only are accessed payroll taxes should be pretty happy too. Also, those who pay no taxes and are recipients of our luscious entitlement programs may want the "rich taxed more" to feed their lifestyles, but I see that as par for the course.
However, that is only the beginning of the relentless pursuit of tax dollars from our government. The accumulated principal after being taxed as earned income has to go through more layers of tax to feed our entitlement and defense programs. When we buy a public companies stock that pays a dividend, helping us to build retirement income, we get taxed 15% again! Worse than that, the company had to pay at least 35% or more in some cases, before allocating the dividend to the investor. So our government earns another 50 % on the same dollars that were accumulated by the original taxpayer. Not a bad scheme eh? If we add it all up the feds take more than 100% over time of every dollar earned. Capitalism is looking pretty good now!! Let's not shoot ourselves in the foot here. If we kill the the capitalist pig we kill all the income, and with that the very programs that are meant to create a sense of fairness.
Thanks again President Obama for your cheap and inexcusable populist rhetoric designed to incite class warfare and ignite anger and fear among the great people of this nation. You are a foolish man indeed and I can only hope that some candidate from any party will expose the real truth about your philosophies.
Later my friends,
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