nhboy
Ubi bene ibi patria
" There’s something about taxes that elected Republicans know, but most Americans are completely unaware of. It’s the reason we keep falling for the perennial GOP tax scam, and Paul Ryan, Mitch McConnell, and their buddies in the White House are getting ready to run this ruse on American working people all over again.
Here it is in a nutshell: Tax cuts for truly wealthy people increase their income and wealth; tax cuts for working people actually decrease their income and wealth over time.
Here’s how it works.
If you’re part of the top .1% – say you’re earning a million dollars a year – and you get a tax cut, you’ll keep more of the money you’re earning. The main reason is because people in those income categories 1) generally have a high degree of control over their own income; and 2) they more often than not already are working under a massive tax cut – at least a lower tax rate – called the capital gains tax. But even setting aside Part II of that, truly super-high income earners, like the banksters on Wall Street or CEOs of large corporations, have a significant measure of control – if not total control – over their own income. For working people, it’s an entirely different story.
Let’s say for the sake of argument that I’m a super-wealthy entrepreneur and I own the company you work for. While I can set my own paycheck (within the parameters of money available to the company), I also set your paycheck. But that’s largely a “market function” – that is, I pay as little as possible for the right talent to get the work done.
So if we live in a country where working people pay, to use round numbers for example, a 50% tax bracket, and I know that you need $50,000 a year after taxes to live, and pretty much anybody who’s applying for your job will also demand at least a $50,000 take-home pay, I’ll set the wage for that particular job at $100,000 a year. At a 50% tax rate, that gives you $50,000 after taxes. "
http://www.alternet.org/right-wing/perennial-gop-tax-scam
Here it is in a nutshell: Tax cuts for truly wealthy people increase their income and wealth; tax cuts for working people actually decrease their income and wealth over time.
Here’s how it works.
If you’re part of the top .1% – say you’re earning a million dollars a year – and you get a tax cut, you’ll keep more of the money you’re earning. The main reason is because people in those income categories 1) generally have a high degree of control over their own income; and 2) they more often than not already are working under a massive tax cut – at least a lower tax rate – called the capital gains tax. But even setting aside Part II of that, truly super-high income earners, like the banksters on Wall Street or CEOs of large corporations, have a significant measure of control – if not total control – over their own income. For working people, it’s an entirely different story.
Let’s say for the sake of argument that I’m a super-wealthy entrepreneur and I own the company you work for. While I can set my own paycheck (within the parameters of money available to the company), I also set your paycheck. But that’s largely a “market function” – that is, I pay as little as possible for the right talent to get the work done.
So if we live in a country where working people pay, to use round numbers for example, a 50% tax bracket, and I know that you need $50,000 a year after taxes to live, and pretty much anybody who’s applying for your job will also demand at least a $50,000 take-home pay, I’ll set the wage for that particular job at $100,000 a year. At a 50% tax rate, that gives you $50,000 after taxes. "
http://www.alternet.org/right-wing/perennial-gop-tax-scam
