Are You Paying A Higher Rate Of Taxes Than Millionaires? – The Buffett Rule
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The above video from the White House White Board lays out the average tax rates for families in America that make anything from $49 thousand to over $170 thousand a year. The video also includes the tax rates of Millionaires. According to the video, 400 families or individuals in America who earn on average over $110 million a year pay a lower effective tax rate then someone who makes $100 thousand a year. Billionaire Warren Buffett says this needs to change.
These 400 ‘uber wealthy’ pay a rate of 1% less than someone who makes $100 thousand a year, 18% and 19% respectively. What does this 1% difference equal out to in dollars? $440,000,000. That is nearly half a billion dollars. It would take an individual who makes $100 thousand dollars a year, 4400 years to make that 1%.
The Buffet Rule would require these ‘uber wealthy’ individuals to pay a 30% federal tax rate. This equals out to $1,320,000,000,000 a year from those 400 millionaires. That is $1 trillion 320 billion.
At the above link you can calculate your individual effective tax rate and see how many millionaires pay a lower tax rate then you. I calculated mine while even taking into account the federal tax refund I will receive, and it came out to 13%. There are 16,400 millionaires who pay a lower tax rate than me. If they pay 1% lower than me at 12%, that’s $164,000,000 each year that isn’t being paid in taxes. While I’m not directly being robbed $164,000,000, I do feel a little cheated.
Do you support the Buffett Rule? Experts are debating on it and President Obama has put the bill in front of the Senate.