Dialog with a Republican.
My neighbor, B, is a progressive republican and a tax partner in a large CPA firm. We had a conversation... "Obama needs to go", said B. Why? He's doing pretty well considering the mess he inherited! "Because all he wants to do is raise taxes! If we don't get control [of congress and senate] my taxes will go up by almost 20%. I already pay almost half my income in taxes: income, property, FICA and the rest" What? How do you get a 20% increase? "FICA - is capped at about 100k. As a partner, I pay FICA at 15%. Lose that cap and my taxes go up immediately by 15%. The top rate of income tax is set to climb to 39%, which is an extra 3%. And there are a bunch of others, too" No -- that's just wrong. Even assuming that happens... an example, if you earned $200k your effective FICA rate would be 7.5% on that $200k, right? So even without a cap, your effective FICA rate will never be greater than 15%. If you earn $200k, that means an increase of 7.5%, not 15%! "OK! But that wouldn't be a 7.5% increase if I earned 300k or 400k or 500k. It would be much greater than 7.5%" B, Sure it would, but if you earn $500k and can't absorb that kind of increase I'd advise you to start looking for a new tax accountant! LOL "Well ok! But do you think it's fair that 60% of the people in this country don't pay any taxes?" Where did you get that number? Do you think it's right that the US has such a large population of poor people they fall under the threshold for federal taxes? "Most of those people aren't poor!" But all of them pay taxes. You included property taxes in your 50%. I assume you included sales taxes, 7% for most everything here in GA? Then those people who pay nothing are paying way more in effective taxes than you - for food and energy and shelter [More . . . ]