Quote:
Originally Posted by stcroixman
33% is a nice way to spin it. Fact is the 10% bracket ends around 20K of taxable income (after deductions). So it's a 5% savings on 20K = $1,000.
Lets' compare that to the decrease in top bracket from 39.6% to 35% on someone with taxable income(after deductions) of 250K per year. So it's a 3.6% savings on 250K =$9,000.
Now tell me who benefits from this and why is someone with 20k of taxable income paying any tax?
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St Croixman...wow...I mean, wow.
"33% is a nice way to spin it"
It's not spin, it's math. the number 10 is precisely 33.33 percent less than the number 15. I'm sorry if that upsets you, or doesn't support your personal political agenda. But I didn't create that fact, it just is.
Let's walk through the math...
First, we'll look at the lowest bracket. Say my taxable income is $20,000. Still with me? Before the BUsh tax cuts, my tax rate was 15 percent, so I paid $3,000.
After the Bush tax cuts, my rate was 10 percent, so I paid $2,000.
$2,000 is 33 percent less than $3,000, therefore my tax obligation decreased by 33 percent.
Now we'll go to the rich guy making $250,000. Before the Bush cuts, my rate was 39.6 percent, so I paid $99,000. After the Bush tax cuts, my rate was 35 percent, so I paid $87,500.
87,500 is 11.6 percent less than 99,000, so my tax obligation decreased by 11.6 percent.
The guy making 20,000 got a bigger tax decrerase (33 percent) than the guy making 250,000 (11.6 percent).
In tennis, they call this game. set. match.