There is a lie being told that investment income is double taxed.
- Thread starter mark14
- Start date
fairsheet
Senator
What you say, is absolutely true. But....I always figured the "double taxed" whine, was bullshit in any case. How many times is that dollar I just bought gas with, taxed? And hey....my house has been taxed 25 times now!
888888
Council Member
At the height of my working life I sat down one day and figured it out as close as I could that I paid about 42% of my taxable income in some kind of tax. Of my total income before deductions I was around 34%.
I was making around 110,000 at the time and paid taxes on about 80,000.
I paid about 22% after deductions to feds 17,000
I paid about 7% to state tax. 5,000
I paid about 7% to SS which was closer to 10% of take home pay 7,000
I paid about 2% to medicare after deductions 1700
I paid about 3% real estate tax 2500
I also pay many other taxes or fees about another 3% 2400
I also paid sales tax of 6.5 on maybe 32,000 or another 2000
and I should feel sorry for Mitt having to pay maybe 22% of all his income to taxes.
I was making around 110,000 at the time and paid taxes on about 80,000.
I paid about 22% after deductions to feds 17,000
I paid about 7% to state tax. 5,000
I paid about 7% to SS which was closer to 10% of take home pay 7,000
I paid about 2% to medicare after deductions 1700
I paid about 3% real estate tax 2500
I also pay many other taxes or fees about another 3% 2400
I also paid sales tax of 6.5 on maybe 32,000 or another 2000
and I should feel sorry for Mitt having to pay maybe 22% of all his income to taxes.
Lukey
Senator
BS! What is being referred to is the FACT that this profit is taxed once as earned by the corporation and AGAIN when paid out to the shareholders. THAT'S double taxation. Sure it is "legal" and yes it happens all the time (like when my state taxes me on my income and again when I spend it). No one is arguing that it doesn't happen elsewhere, just that you leftists at least acknowledge that it is happening with investment income and stop all this rubbish about "the rich" paying so much less than everybody else. Is THAT too much to ask?
Friday13
Governor
It's taxed as income to the corp when they receive it. It's taxed as income to the shareholders when they receive their "share". Each entity receives it as income, and is taxed once. The corp pays the shareholders a percentage of their net. To be "double taxed" it would have to be taxed twice to the same entity. That doesn't happen.
Lukey
Senator
Who owns the corporation and if the corporate tax disappeared who would get the money?
anti.reptile
Council Member
Romney gave some 4 million dollars to charity. Do you know how much Obama gave?
No. First much investment income doesn't come from corporate dividends. Much comes from investing in certificates of deposit or bonds, purchase and sale of stocks, real estate, etc. Romney and individuals like him may be unusual that to some extent he is the corporation but they incorporate in large part to avoid paying their earning at income tax rates. So you are free to invest where you wish but let me ask you then, if I lend you money to go into business and you then pay me back with interest out of your after tax profits are you saying I shouldn't pay on the money I made from investing in you because you are a tax payer too? Why not extend the logic if it is all about double taxation? Why should anyone that makes a profit from selling me something pay taxes as I have already paid taxes once on the money I pay them with and from which they make their profit? The reason is I am not you and you are not me, so our money and taxes aren't the same, and, my friend, even if you think they are people, neither are corporations.
This is what Obama gave http://bucks.blogs.nytimes.com/2010/04/15/all-about-the-obamas-charitable-giving/
Of course the 4 million Romney gave to his church exceeds what Obama makes but as the bible says
"As Jesus looked up, he saw the rich putting their gifts into the temple treasury. 2 He also saw a poor widow put in two very small copper coins. “Truly I tell you,” he said, “this poor widow has put in more than all the others. All these people gave their gifts out of their wealth; but she out of her poverty put in all she had to live on.” "
Obama also pays at a ten percent higher tax rate than Romney even though Romney makes far more without doing any work to earn it.
Mostly, the CEO and other executives.
That's not a lie.
If you said you were lying then we might have a logical dilemma.
Lukey
Senator
A) You can't have a dividend unless you invested in a profit making (and therefor tax paying) business. You can have a capital gain if you invest in a government bond or a CD but that would be the exception, not the rule. The vast majority of capital gains is generated by owning tax paying assets (rental real estate, businesses, etc,).
B) Because as you admit - you and I are not the same person. In the case of corporations and their shareholders, they are the same person(s).
C) No one is saying do away with this (or any other) double taxation. We only ask the left to be honest and stop saying it isn't double taxation (and that these folks "only" pay 15%).
Lukey
Senator
So the owners will get the money (including the CEO and other executives who own stock).
I guess one has to be smarter than a slug to understand this concept.
Example:
A CEO earns a million dollars from payroll.
He pays 35% in taxes; so for simplicity lst's say he pays $350,000.
That leaves him $650,000
He invests his 650,000 and turns it into another million dollars.
He clears $350,000 and pays 15% in cap gains taxes, or $52,500.
He has already paid taxes on the $350,000 (15%)
If he invests the $52,500 and doubles it to $105,000
He pays another 15% on the $52,500 profit he has already paid 15% on the original investment money.
He is technically double taxed, but only at the 15% rate and only one time on payrol earnings at 35%.
I wonder if he considers Planned Parenthood and NPR charities.
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