Thursday, January 26, 2012

Pictorial - What the 99% Pays in Federal Taxes

Federal income tax tables from the IRS are very boring and sometimes confusing for many people, so I created a simple pictorial that explains them much more easily by using some sample occupations and their approximately related income tax brackets.


Tax Rate

10% - The unemployed who receive jobless benefits are required to pay federal income taxes. Food stamps are not taxed, but these people are castigated by the Republicans for needing them.

15% - Low paying jobs, usually only part-time hours with no benefits. Many people work two or more of these jobs just to make ends meet. They are sometimes called the "under" employed.

25% - Middle class jobs, usually full-time with some type of benefits, such as healthcare insurance and/or retirement plans. Inludes many small businesses owners and Warren Buffett's secretary.

30% - Established small business owners and members of congress if they don't have any other financial interests. Congress receives "gold plated" benefits and makes America's unemployed get drug-tested.

35% - The top marginal income tax bracket. Mid-size to large business owners, lawyers, federal judges, and doctors. Sometimes referred to as the "upper middle-class". Includes base salaries for CEOs (see bonuses below).

15% - The top 1% - CEOs such as Mitt Romney and Warren Buffett, bankers, celebrities, (etc) earning capital gains, bonuses, stock-options*, dividends, annuities, trust funds, carried interest, art, gold, jewelry (etc) See the Forbes Fortune 400

* What large corporate CEOs pay themselves from revenues generated through corporate income. This includes oil tycoons, big defense contractors, big bankers, hedge-fund managers, private equality managers, investment bankers like Goldman Sachs, automotive executives, and all the other robber barons in the top 1%. The 99% has been getting ripped off since 1921 with these preferential tax rates for the uber-wealthy.

Click photo below for a poster version of this page.

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1 comment:


    Morgan Stanley announced earlier this month that it would cap cash bonuses for 2011 at $125,000 for it's employees. The CEO told disgruntled employees: "If you're really unhappy, just leave."