Talking point: Bush tax cuts for wealthy were a "tax holiday"

[rfranklin]

The holiday is over. We tried it, it didn't create any jobs and the economy tanked so let's go back to the Regan tax rates.

[corkhead]

1. I say alternatively that we go back to another republican's tax rates: Eisenhower

[rfranklin]

I am willing to compromise at 45%...

don't want to seem unreasonable.

[JuniperLea]

3. My bonus was taxed at 55%

And my regular withholdings are 33% of my salary. I included Fed, State, SSDI, and health insurance withholdings because in a perfect world, all of those things would be handled via one tax... goddamn socialist that I am, I know.

Most socialist countries charge 35 - 40% in taxes and get all the services I've included here.

I'd gladly pay 2 - 7% more in taxes to insure we're all taken care of properly.

Asking the wealthy to keep up is as it should be.

[Statistical]

4. Your bonus was not taxed at 55%, your income was not taxed at 33%.

Withholding are meaningless stat. What matters is what is paid not the amount withheld.
Bonuses are treated as regular income for tax purposes.

Your taxes actually paid is line 60 minus any tax credits on lines 63-67.

It would be nowhere near 33% or 55% unless you make something like $20 million a year (gross).

[JuniperLea]

5. Please do the math for me...

My bonus was $9k and my actual check was $5k... no other withholdings were taken.

If I pay all this into the system and get nothing back, the statistic of withholdings is valid.

[Statistical]

6. Tax code is public knowledge. Witholdings are not same as income.

All wage Income is treated the same.

http://taxes.about.com/b/2008/10/21/2009-tax-brackets-announced.htm

So hypothetically if your income in 2009 was $50K you claimed no deductions or tax credits other than the standard deduction ($5700 single), exemption ($3650), and "making work pay" credit ($400) your total "tax free money" = $9750

$50,000 - $9,750 = $40,650 taxable income

http://en.wikipedia.org/wiki/Rate_schedule_%28federal_income_tax%29

If taxable income >$33,951 and less than $82,250 taxes = $4,675.00 plus 25% of the amount over $33,950

So $4675 + $1675 = $6350 in total taxes.
Minus the MWP credit $6350 - $400 = $5950.

$5950 / $50,000 = 11.9% effective federal tax rate. That numbers is more a maximum rather than average because most people have some other deductions, credits or itemized to reduce taxable income.
Even if you throw in 8% for FICA and 5% effective for state taxes it would be around 25%. Substantially less than your claim.

Nobody has an effective federal tax rate of 33% except multi-millionaires. Not a single person in the United States has an effective federal tax rate of 55%.

[JuniperLea]

9. I get that... what I'm saying is...

oh fuck it. That still doesn't tell me why nearly half of my bonus was taken.

[SpiralHawk]

2. "More tax holidays for the rich. Smirk." - Rush DraftDodger Limbaugh (R)

"That's like our Republicon mantra and shit. Too bad about you American proles and shit like that. Sneer. Smirk."

- Rush DraftDodger Limbaugh (R)

[HughBeaumont]

7. That cigar is made of cured C-notes.

This pig needs to be run over with a tank.

[HughBeaumont]

8. An eight-year holiday for the sociopathic wealthy while they threw the peasantry cake.

ZERO net new jobs created in 10 years. Strongest period of employment during the Bewsh era was 2004 . . . RE-ELECTION year. There's your vaunted tax cuts, Pubsters.