Make elites compete: Why the 1% earn so much and what to do about it

Re:Make elites compete: Why the 1% earn so much and what to ... by RockyMcNuts on Saturday March 26, 2016 @12:05PM (#11366130)

The problem is, if you make all your income from investing, via dividends and capital gains, you pay 15% tax on it.

The 'wedge' on the first dollar earned by a minimum wage worker is 15.3%.

And then don't get me started on the deductions, Mitt Romney's IRA etc. that mean those guys can don't even pay the 15%.

I don't think your math adds up...in NYC a huge cash bonus gets taxed at > 50% combined Fed, state and local. The CEO will always take something that's structured as future capital gain, not in 1 year, but whenever he decides to cash out.

The tax system and rent seeking in this country is a disgrace.

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Re:Make elites compete: Why the 1% earn so much and what to ... by encoderer on Saturday March 26, 2016 @01:55PM (#11366629)

Minimum wage workers aren't paying any taxes after standard deduction and exemption.

Capital gains is now 20%.

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Re:Make elites compete: Why the 1% earn so much and what to ... by RockyMcNuts on Sunday March 27, 2016 @10:02PM (#11372333)

fair enough, the top bracket (over $400,000) now pays 20% on long-term capital gains and dividends.

http://www.fool.com/retirement/general/2015/12/14/long-term-...

the idea that minimum wage earners aren't paying taxes is a nonsensical talking point with no basis in reality. It only works if you disregard FICA, which is economically unjustifiable and not done in other contexts (like quantifying big government's size and tax bite). The bottom line is there is a 15.3% wedge between what the minimum wage employer pays and what the employee receives, and that's what has economic impact. The EITC offsets a part of the wedge, but only a part of it.

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