Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
Who pays a higher percentage of their income in taxes?
Is it the person making $20,000 a year who might not pay Federal Income tax but who do pay other types of taxes like sales tax, excise tax, payroll tax, fees (like car registration etc). Or is it the multimillionaire who is able to legally avoid paying taxes by using tax shelters, off-shore accounts, and other legal loop-holes. Again, I'm talking about "percentage of income" which I think should include any capital gain on investments for this argument.
14 Answers
- 9 years agoFavorite Answer
It's not a meaningful question. Since you are including ll forms of tax, including consumption (sales) taxes, we cannot know without knowing how much of their income the rich are spending on items which incur those taxes. The wealthy sometimes have ways to shelter income, but not outflow.
In any event, it annoys me when people criticize the wealthy (and I'm certainly not in that category myself) for avoiding taxes through shelters and tax incentives. Those items exist because Congress (or the states in some cases) WANT money to flow to certain places, and offer a tax incentive to encourage that. If we removed all such incentives and tax shelters, the government would lose any ability to attempt to move the economy in a certain direction. For example, dividends from companies are taxed at a lower rate in most countries. This is to encourage investment in companies, and without it, there would likely be a money crunch, with investment curtailed. That is NEVER good for an economy.
- Anonymous9 years ago
Lets say the tax rate was 10% and the poor guy making $20k a year would only pay $2k in taxes while the guy making $2 million a year pays $200K a year so the rich person would pay more in taxes.
- Philip HLv 79 years ago
As always, those who pay no attention to details ignore all the taxes they pay that are not Income Taxes paid to the Federal Government. When speaking of taxes, you need to include all the taxes you pay.
When you count all the taxes you pay every time you spend, the POOR pay the highest percentage because they must spend the largest percentage of their income on the necessities of life and save or invest the smallest percentage of their income.
The poor don't write the tax laws. They do vote for the politicians that spend too much.
Therefore I have no qualms about moderately increasing the taxes on the very rich. They influence Congress who makes the laws. They should pay for the Government they dominate.
Corporations should pay No Taxes because they just pass that expense on to the end user (the poor) in the form of mark-ups and the poor suffer even more.
All income belongs to individuals, not businesses. Tax the Individual accordingly.
- i_was_myselfLv 79 years ago
Hold on there. If you are single and make 20,000 dollars chances are at least 5% if not a lot more of your income goes to federal income tax after tax returns. At that income level you have to have children or other significant tax credit to avoid income taxes.
- How do you think about the answers? You can sign in to vote the answer.
- Anonymous9 years ago
In percentage terms, probably the 20K a year person, in terms of actual cash especially with capital gains thrown in, definitely the millionaire.
Don't forget that Romney wants to eliminate tax loopholes.
- u_bin_calledLv 79 years ago
ok.....
.... but other than giving you a single talking point and subjective number to reinforce a sense of victimhood.... what does that "percentage" really mean?
...does it mean that the person earning $20,000 is actualy paying $350,000 in taxes, like my "rich' friend did last year?
...does it change the fact that tax codes have always taken into account contribution to the economy? For example... you DO know that when an "evil rich" person "hoards" his money in a bank, that bank uses that money to fund loans and offer better rates to the account holders making $20,000.... right?
...you DO know that investing $200,000 in a factory that employs 200 workers contributes more to the economy than giving 200 workers $1,000 each....right?
so once again.... other than reinforcing a FEELING of injustice, what's your point?
- Jackie DLv 59 years ago
Anyone who does not have enough money to use the built in loopholes in the tax schedules
- Anonymous9 years ago
50,000 millionaires pay a lower tax rate than I do.
Romney pays a little more than half the tax rate I do.
- Anonymous9 years ago
The rich. I have paid no federal taxes in years. That is, we get a refund because of kids and such.