I hope the readers of the blog don't think this is becoming redundant, but I cannot stand by while people live in a world of myth. People can vote for whomever they want, but I am worried that the things people believe in and use as a basis for voting can be factually wrong. To me, voting without truth is dangerous. If you're going to vote democrat or republican, that's fine. Just please know the facts about the information you care about. I hope to help people learn things. I hope to help people dispel myth and see the truth. Recently, I think the biggest thing that gets under my skin the most is this myth about middle class vs. millionaires' tax rates. See below:
Last night, I received a Tweet (this blog has a Twitter account @lmelephantblog) from someone who did not like our conservative viewpoint. I had tweeted that Mitt Romney won the Nevada Caucuses and used the hashtag @MittRomney in my tweet. He obviously monitored Romney's twitter and decided to message me. His information is blacked out, but the message is clear:
I turned to Microsoft Excel (you know I just love Excel tables) to help with the analysis. First, allow me to establish some givens:
- I will use the most conservative estimate I can to make sure (though unrealistic) each taxpayer pays the maximum amount. This means:
- No deductions
- No write-offs
- Neither taxpayer will receive a refund of any kind
- Each taxpayer will pay the pre-payroll tax holiday tax rate of 7.65% total (6.2% for SS and 1.45% for Medicaid taxes)
The math is quite simple. Please see the results:
So what does all this mean? Well, I have concluded:
- Someone that makes $57,000 of total income pays a final effective tax rate of 25.85%
- It would take an income of $83,250 to pay a final effective tax rate of 28.00%.
- Again, these tax rates are WITHOUT deductions. Normally, people making between $57K and $83K would have children, houses, and other write-offs and deductions, making their effective tax rates even lower. I make $53k (now current salary) and my tax rate was less than 14%. See my tax information at this post: http://loudmouthelephant.blogspot.com/2012/01/part-2-what-do-mitt-romneys-tax-returns.html
- The twitter commenter was $26,250 or 46% too high.
What do YOU think? Is this analysis off? Is this the truth? All comments are appreciated.