The poor still pay a very high percentage of their income in sales and payroll taxes, and still have barely enough to cover the necessities – if they have enough at all. If anything, this misleading study shows us how imbalanced our incomes have become. The rich pay overall, much less in payroll taxes, sales taxes – and capital gains and dividends (a majority of their income) is taxed at lower % – meaning that very often, the “effective tax rate” for the very rich is much lower than a middle or working class individual.

Please note: I understand that capital gains are taxed at a lower percentage in order to avoid excessive double taxation of corporate income – By reducing the corporate income tax and increasing the dividend or capital gain tax this could break even while still not supporting the very rich quite as much.

Also, I am not in support of higher taxes, but saying everyone needs to pay their “fair share” by levying income tax against the very poor (who already pay a high enough % in taxes) is missing the overall flaws in our tax system.

How exactly did they define “Income”? They are obviously not basing this off of “taxable income” – otherwise these folks would have paid taxes!

If “income” is defined as what is on your W-2, 1099′s, 1099-B – then that doesn’t take into account ANYTHING. What about business income/losses, capital gains/losses, asset basis, normal deductions and exemptions?

Just taking someone’s W-2 number and getting upset when they don’t pay taxes is ridiculous. That’s like looking at a company’s gross revenue and completely ignoring that they may have different cost structures (and maybe even have losses!). There is a reason you aren’t taxed on your “top-line” of income – because it makes no sense.

But yet we still seem to get these populists who have absolutely no idea how taxation works calling for a “flat-tax” as if that’s going to make it simpler.

News Flash: Taxation is complicated not because of the rate at which income is taxed, but because finding out what income is ACTUALLY taxable. If I make $100 but it costs me $90 to make that revenue, should I pay as much tax as someone who made $100 with only $10 of costs?

Please don’t post misleading studies performed by morons.

If you want to be mad at something, be mad at the fact that income from different sources is treated differently. A dollar is a dollar is a dollar, and it should be taxed the same whether it is earned from work, from capital gains or from dividends. That is the inherent unfairness built into the system.