Penalized? Yes. If I paid the same percentage I would be contributing $24,000 vs. $3200. Instead at 34% I am contributing $51,000. My 51K is both a higher dollar value and a higher percentage. Even at the 24k assuming the government collected 1 million dollars in tax revenue overall I paid 2.4% while the other contributor .32%.
I can only control the amount of income my family makes. Where that falls on the scale of overall income is not anything I can control and thusly should not be penalized becuase of it. If 150k suddenly became close to the bottom of the pay scale I would not expect to pay less.
You make your money - you pay your fair share. Where that falls in relation to what other people make shouldnt matter.
To paraphrase the misused quote earleir - Its no easier to pass a camel through the eye of a rich man or a poor man. It sucks for both men and the camel.
MikeyRavioli wrote:
Insufficient data.
"What the Republicans are arguing is, The top 20 percent of all income earners in the United States pay approximately 86 percent of all federal income taxes."
From the OP.
This only includes Federal Income Tax.
You and I both agreed that doesn't cover the entire tax burden.
When you take all taxes into consideration The top 20 percent of all income earners in the United States pay approximately 64.3 percent of all federal income taxes.
BUT
The top 20 percent of all income earners in the United States TAKE HOME 59.1 percent of all income.
Pretty even right? If you take in the same percentage of income overall as a group that you as a group are paying out in taxes, that's pretty even. This is because the top 20% are considered to be able to afford a higher % of their income in taxes that the bottom 20%.
As you said 16% of 20k is 3,200 leaving 16,800 take home.
16% of 150,000 is 24,000 leaving 126,000.
Sure it's the same percentage, but when considering what would happen to the above percentages regarding overall tax burden, it would put a much, much larger burden on the bottom percentage of income earners overall, as a group, as a percentage of overall taxes paid.