Wednesday, September 21, 2011

Rich Pay More in Taxes Numbers Don't Add Up.

This story is driving me crazy. 

Am I the only one who noticed the switch in what’s counted as taxes between the rich and poor?

AP made the subtle change from one paragraph to the other, without making the distinction that their numbers for millionaires included payroll taxes, while not including those same numbers for those making $50,000 to $75,000.
This year, households making more than $1 million will pay an average of 29.1 percent of their income in federal taxes, including income taxes, payroll taxes and other taxes, according to the Tax Policy Center, a Washington think tank.

But in the next paragraph, notice the payroll tax is gone:
Households making between $50,000 and $75,000 will pay an average of 15 percent of their income in federal taxes.

Just federal taxes, not the payroll tax or other taxes like state and sales taxes. Think about it, many middle class workers are in the 15% tax bracket. Add to that their 15% payroll tax and we’re suddenly talking about a 30% tax rate, which is higher than the 29.1% those above $1 million are paying in total.

Could someone correct me if I’m missing an important paragraph edited from this version of the AP story.

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