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[fishbones]

Originally Posted by wader-dad

Lets examine the top 1% taxpayers again to see if they have any incentive to keep making money and if they are losing 50%. Attached is the full summary of all tax returns filed in calender year 2006 published by the IRS - the last data available.

There are 1,357,192 taxpayers in the top 1% of richest taxpayers. They had adjusted gross income of 1.791 Trillion dollars of income. Yes trillion. The average income reported on each of the top 1% returns was $1,320,289. for the year.

The average tax rate ( tax paid as a percent of income) on those 1% returns was 22.79% So the guys make an average of $1,320,289 and paid 22.79% in taxes. See the chart -those are the facts. Yes they pay 40% of total taxes paid but each loses around a quarter of their money to the feds.

So I can't really feel that the 1% people are being destroyed by taxes, that they have no incentive to make any money and if they have to pay 25.98% of their $1,320,289 under Obama's plan that the USA will come to an end.

So lets not panic here.

Wow, that would have to be one heck of a "small business" to be in the top 1%. Do you think landscapers, liquor store owners, contractors, etc...fall into that 1% catergory? The taxes for real small businesses are still an impediment to many small business owners. Also, you are leaving out things like unemployment taxes, real estate taxes, and payroll taxes. Maybe it's not too bad in CT, but in RI it's almost impossible to own and operate a small business profitably.

[wader-dad]

Originally Posted by fishbones

Wow, that would have to be one heck of a "small business" to be in the top 1%. Do you think landscapers, liquor store owners, contractors, etc...fall into that 1% catergory? The taxes for real small businesses are still an impediment to many small business owners. Also, you are leaving out things like unemployment taxes, real estate taxes, and payroll taxes. Maybe it's not too bad in CT, but in RI it's almost impossible to own and operate a small business profitably.

Fishbones- sorry- I was responding to Sandman here and on another thread where we were going back and forth on what affect the Obama plan would have on taxes and I had pointed out that the plan would only hit the rich on their income-(salaries and bonuses and dividends and capital gains) and they would still be interested in being rich and making money even if the top rates went back to the clinton era. He said it was unfair that the top 1% richest taxpayers were paying 40% of the total tax.

As I understand the Obama plan-the tax rate on salaries over $250,000 would go up- As to small businesses- I agree with you that the cost of doing business is incredibly high- but Obama's tax plan does not make that worse-The taxes do not go up on a small business until Joe the Plumber has a good enough year that he has enough profit (after paying all expenses and materials and benefits and payroll taxes) to be able to pay himself $250,000 in salary and bonuses free and clear. Then Joe the Plumber on his personal 1040 would pay some more taxes under Obama as compaed to Bush. I think Joe the Plumber would be thrilled to be able to pay himself over $250,000 in bonuses and salary if he could.