Why Don't News Outlets Fact-Check This Claim?
Posted: February 23rd, 2020, 6:05 am
I think it would be helpful if more news outlets, such as CNN, MSNBC, the Washington Post, etc., would fact-check the Democrats' repeated claim that the rich do not pay their fair share in taxes, especially when you hear Democratic candidates say things like "I want a rich CEO to pay at least the same tax rate that his secretary pays," implying that he pays a lower tax rate than his secretary does.
If you look at the IRS tax tables, you'll see that those who make over $600K per year from regular income pay a tax rate of 37%--yes, 37%--and that's not counting the state and local taxes they pay. Those who make over $600K per year from capital-gains income pay a tax rate of 37% if they own the capital-gains assets for less than a year (short-term capital gains). If they own them for more than a year (long-term capital gains), they pay a tax rate as high as 20%, which is about 60% higher than the tax rate paid by people in the second tax bracket--and this is not counting the capital gains taxes that their state requires them to pay.
If you make over $600K in long-term capital gains income in my state of Virginia, you will pay a state capital gains tax rate of 5.75%, which will make your total tax rate--federal and state combined--25.75%, which is 60% higher than the tax rate for the second tax bracket and 16% higher than the tax rate for the third tax bracket. I guarantee you that 99.9% of all secretaries fall in the second or third bracket. If you're single, you have to make at least $84,200 to be in the fourth tax bracket. If you're married, your household income has to be over $168,400 to be in the fourth tax bracket. (The tax rate for the fourth bracket is 24%, still lower than what a rich person would pay even if all of their income came from capital gains.)
If you look at the IRS tax tables, you'll see that those who make over $600K per year from regular income pay a tax rate of 37%--yes, 37%--and that's not counting the state and local taxes they pay. Those who make over $600K per year from capital-gains income pay a tax rate of 37% if they own the capital-gains assets for less than a year (short-term capital gains). If they own them for more than a year (long-term capital gains), they pay a tax rate as high as 20%, which is about 60% higher than the tax rate paid by people in the second tax bracket--and this is not counting the capital gains taxes that their state requires them to pay.
If you make over $600K in long-term capital gains income in my state of Virginia, you will pay a state capital gains tax rate of 5.75%, which will make your total tax rate--federal and state combined--25.75%, which is 60% higher than the tax rate for the second tax bracket and 16% higher than the tax rate for the third tax bracket. I guarantee you that 99.9% of all secretaries fall in the second or third bracket. If you're single, you have to make at least $84,200 to be in the fourth tax bracket. If you're married, your household income has to be over $168,400 to be in the fourth tax bracket. (The tax rate for the fourth bracket is 24%, still lower than what a rich person would pay even if all of their income came from capital gains.)