Forget dollars, when discussing taxes paid. Think of it as “livings” instead.
Currently, about $8000 is one “living,” roughly what a disabled person receives who can’t work. You can’t live on it, but usually you don’t die. (I was startled to see that $0 – $8700 still IS taxed in the US, at 10%. Sheesh. Plus local taxes, state taxes, sales taxes, and payroll taxes.)
The median household income, i.e what half of American households earn less than, is currently $$44,389, or 5.5 livings, for an average of $16,000 to $21,000 (two livings) per person in the household, depending on the family size. They pay about 15% on income taxes. Plus local taxes, state taxes, sales taxes, and payroll taxes.
Two livings per person is the least they can take in, year in, year out, and still be financially stable over a lifetime.* The 47% are all below this level of stability.
By contrast, Romney’s $13.7 million 2011 income is 1,625 livings. What does that even mean? It means his 2011 pretax income is enough to support Mitt, Ann, and their five sons at median wage for one hundred sixteen years.
His post-tax 2011 income, about $12 million, is only sufficient to support the Romney clan for 107 years.
If the $13.7 million had been taxed at the highest level, 35%,** with no deductions, that would leave the seven Romneys with only 81 years worth of median wage income.
Noni
*Lifetime earnings averaged cradle to grave must be sufficient to support the worker, himself as a child and himself as a senior. It’s an actuary thing.
Yes, I know the result would be altered slightly by the lower graduated marginal rates for income under $388,000. But $388k is only 3% of the $14 mil, so the difference is negligible. For him, anyway.
Yeah, sadly http://blogs.e-rockford.com/applesauce/files/2011/11/ldah6rdp6ukvngoyqi1fcg.gif But maybe it’s just because all those potentially ravening youngsters are staying home and blowing up pixels instead?
Forget dollars, when discussing taxes paid. Think of it as “livings” instead.
Currently, about $8000 is one “living,” roughly what a disabled person receives who can’t work. You can’t live on it, but usually you don’t die. (I was startled to see that $0 – $8700 still IS taxed in the US, at 10%. Sheesh. Plus local taxes, state taxes, sales taxes, and payroll taxes.)
The median household income, i.e what half of American households earn less than, is currently $$44,389, or 5.5 livings, for an average of $16,000 to $21,000 (two livings) per person in the household, depending on the family size. They pay about 15% on income taxes. Plus local taxes, state taxes, sales taxes, and payroll taxes.
Two livings per person is the least they can take in, year in, year out, and still be financially stable over a lifetime.* The 47% are all below this level of stability.
By contrast, Romney’s $13.7 million 2011 income is 1,625 livings. What does that even mean? It means his 2011 pretax income is enough to support Mitt, Ann, and their five sons at median wage for one hundred sixteen years.
His post-tax 2011 income, about $12 million, is only sufficient to support the Romney clan for 107 years.
If the $13.7 million had been taxed at the highest level, 35%,** with no deductions, that would leave the seven Romneys with only 81 years worth of median wage income.
Noni
*Lifetime earnings averaged cradle to grave must be sufficient to support the worker, himself as a child and himself as a senior. It’s an actuary thing.
Yes, I know the result would be altered slightly by the lower graduated marginal rates for income under $388,000. But $388k is only 3% of the $14 mil, so the difference is negligible. For him, anyway.