Friday, April 13, 2012

Poorest Taxpayer has 200% Tax Rate

Lies, damned lies, and statistics.
The poorest taxable person is paying a 200% tax rate. The following image is a snippet of the tax rates for the lowest taxable income from the 1040EZ instructions.
If we take that first block and translate it into percentages you will see that if you have just $1 of taxable income your tax rate is 200%.
less than
$1 $50 200% 4%
$50 $100 12% 6%
$100 $150 10% 6.6%
$150 $200 8.6% 6.5%
$200 $250 8.5% 6.8%
Thanks to the progressive tax system we have to deal with insanity like this. Every little range is detailed with a chart. For all of the adding and subtracting that you have to do on your taxes you can not simply multiply your income by a percent to know how much you should owe. You have to go to a huge chart that goes from $1 to $100,000 in $50 increments. And that is the easy (EZ) form!

People and businesses will spend an estimate $250 billion to $300 billion a year on preparing their taxes. The POTUS wants to add more rules to the tax code to raise taxes on the rich. More charts, more expense on preparing taxes, less money for the economy.

You could do taxes yourself. If you screw up you will get hit with a penalty or even go to jail. Isn't it nice of our congressmen and POTUS to look out for us and make more tax rules? Isn't that just what you want? A chance to go to jail by screwing up paper work?

That is what a progressive tax system does. That is what class warfare does. However the strange thing is the rich can afford the accountants to make sure their taxes are properly paid so that they avoid jail. Can you?

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