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| By Kenny Youngblood |
If You Are Working At A Job In America, It Does Not Matter If You Earn A Hundred, A Thousand, A Million Or Even A Billion Dollars A Year, Federally You Are Taxed On A Sliding Tax Bracket Rate, Which Simply Increases Or Decreases In Conjunction With Your Annual Earned Income Level And Believe It Or Not, No One In American, Not Even Bill Gates Or Warren Buffett, Earn From Solely Working At Their Job, An Annual Income Of A Billion Dollars Or More.
The Applicable Tax Brackets For This Type Of “Ordinary Income” Currently Ranges From 10% Up To 35%, So When Someone Like Mr. Obama Says, That Mr. Buffett Pays A Lower Tax Rate Than Does His Secretary, He Conveniently Fails To Mention, Only On Money That He Has Previously Earned And Subsequently Paid, No Doubt The Maximum 35% Rate Of Tax On, As Ordinary Income Earnings And Then Invested Those Same “Taxed Earnings” Into Something That Now Generates Interest, Dividend Or Investment Income Which Is Also Called Capital Gains.
Look At It In This Fashion, You Earn An Income From Your Job And Taxes Are Already Withheld As Indicated On Your Paycheck Stub. That Is Your Ordinary Income, That Has Been Taxed At Your Ordinary Income Tax Rate.
If You Then Take Your Already Taxed Paycheck And Cash It And Buy An Interest Bearing Or Dividend Yielding Instrument (Stocks, Bonds, Etc.) Then Any Income That Your Invested Cashed Paycheck Earns, Is According To The Tax Law Considered Investment Income Or Capital Gains And You Will Have To Pay Taxes On Those Earnings, At The “Investment Income” Or “Capital Gains” Tax Rate (Currently 13% - 15%) And It Is This Percentage Number Alone, That Mr. Obama And Others Use When Trying To Confuse You Into Thinking The Wealthy Are Paying Less Taxes Than The Middle Class.
Now Consider: It Is This Capital Gains Income That Is So Vital To Our Economy, Because This Is What Entices The Wealthy Investors To Invest In Our Businesses And Municipalities, Etc. And It Is This Lower Capital Gains Tax Rate That Applies To Their Capital Gain Income Alone, That Allows Those Same Investors To Make A Profit. Because The Higher You Raise The Capital Gains Tax Rate, The Less Profitable An Investment Will Become And Would Thus, Lead To Fewer Investors For Our Economy.
You Should Realize That These Investors Assume Risks By Investing Their Previously Earned And Taxed Money Into Our Economy, Because If The Business (Investment) Fails, They May Lose All Of Their Money, So The Risk - Reward Ratio Has To Be Balanced, Therefore, Increasing Capital Gains Taxes On Investors Does Not Change Their Level Of Risk, It Only Changes Their Level Of Reward…
Therefore, Only When Mr. Obama Uses Mr. Buffett’s Capital Gains Tax Rate (Currently 13% - 15%) On Earnings Generated From His Income, (Which He Has Previously Been Taxed No Doubt, 35% Ordinary Income Tax On) And Then Compares Or Contrasts That Same, To Mr. Buffett’s Secretary‘s “Ordinary Income” Earnings Tax Rate Of (16% To 35%), Can He Somewhat Only Partially Honestly Say, That The Secretary Pays A Higher Tax Rate Than Mr. Buffett.
Moreover, The Real “Common Sense” Issue Is, Even If You Did Not Consider The 35% Ordinary Income Tax Already Paid On That Money That Mr. Buffett Invested, And Only Took Into Consideration The 15% Capital Gains Tax On Those Investments, How Much Is 15% Of (1B)One Billion Dollars, Answer $150,000,000 One Hundred And Fifty Million Dollars.
Now, If Mr. Buffett Paid $150,000,000 One Hundred And Fifty Million Dollars In Taxes And His Secretary Paid 35% Tax On Her Ordinary Income Of, Let’s Be Generous And Say $1,000,000 One Million Dollars, Then How Much Is Her Tax, Answer $350,000 Three Hundred And Fifty Thousand Dollars.
Therefore, I Ask You, Do You Think Mr. Obama Thinks You Are So Stupid That You Will Believe Mr. Buffett’s Secretary’s 35% Is Greater Than Mr. Buffett’s 15% In Taxes Paid?
Perhaps He Just Wants You, To Not Know The Whole Truth And Help Him Force Congress To Increase The “Billionaire’s” Capital Gains Tax To An Equal Percentage Of 35%, So He Can Collect That Additional $200,000,000 Two Hundred Million Dollars, You Know… Their “Fair Share”…
One Final Thought To Ponder, If You Still Ignorantly Believe Mr. Obama And Agree That Both Tax Rates Should Be Equal, Consider This: 35% Of (1B)One Billion Dollars Is $350,000,000 Three Hundred And Fifty Million Dollars And 35% Of (1M) $1,000,000 One Million Dollars Is $350,000 Three Hundred And Fifty Thousand Dollars. Therefore, That Secretary Would Have To Live, Earn And Pay That Much In Taxes, For One Thousand Years, Just To Equal What That Billionaire Paid In One… Yeah, That Sounds Fair….
UPDATE: Since The Release Of Mitt Romney’s 2011 Taxes The Same Argument Is Being Made That He Is Paying Less Than You So Lets Take A Quick Look At The Facts To See If You Are Being Told The Truth…
Mitt Romney’s 2011 Income: 13.6 Million And His Taxes Paid: 1.9 Million Thus, His Effective Tax Rate Is 14.1% Now Consider….
For A Middle Class American With An Income Of (100K)One Hundred Thousand Dollars And Taxed At 35% = $35,000Thirty-Five Thousand Dollars, So For This Middle Class American To Pay An Equal Amount As Mitt Romney Paid In Taxes It Would Take 1.9 Million / 35,000k = 54.285 Years.
Consider It In This Manner, If On January 01, 2012 That Person Turned (20)Twenty Years Old And Was Hired On That Same Day At A Job Making That (100K)One Hundred Thousand Dollars Per Year, He Would Equal The Taxes Paid By Mitt Romney On Or About March 14, 2067 Or A Long Career Later.
Now Consider If Mitt Romney’s Tax Rate Was Increased To The So Called “Fair Share” Tax Rate Equal To That Same Middle Class American With An Income Of (100K)One Hundred Thousand Dollars, Taxed At 35% = $35,000Thirty-Five Thousand Dollars. Therefore, For This Middle Class American To Pay An Equal Amount As Mitt Romney Would Have Paid (13.6 Million x 35% = 4,760,000Four Million, Seven Hundred And Sixty Thousand Dollars) In Taxes, It Would Take 4,760,000 Million / 35,000k = (136)One Hundred And Thirty-Six Years.
Perhaps The Obama Health Care Has Taking This Into Consideration But We Better Hope Mr. Romney Doesn’t Pay Anymore Taxes, Because I Don’t Think We Could Take Another Year Of This “Fair Share” Stuff…
See more of Kenny Youngblood here.............. http://www.facebook.com/KEYCDY
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