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					Federal Income Tax
                        Taxation


Hot Issue

  -- significant controversy over how the rich get taxed
  -- interesting barometer of how “liberal” the culture is

How Taxes Work

  -- how federal taxation works
  … let’s take a look
2009
Tax
Rates




               Start the counting     9,351st dollar is actually
               at zero                considered dollar number 1
                                      for tax purposes.


        Standard Deduction   $5,700                $9,350 is free
        Personal Exemption   $3,650
                                                $1 million
2009         35%    $327,683                                           $1,679,625
Tax                 (525,642)
                                                     $0

Rates                                     $373,650

             33%       $123,304
                      (197,959)                                         ($679,625)


             28%       $48,118              $0            $171,850
                                                                        ($305,975)
                       (74,655)


Caution:
                                                             $0
credits,      25%       $20,600                $82,400
                                                                        ($134,125)
other                   (26,537)


deductions
                                                $0


             15%       $5,100
                                   $34,000
                                                                        ($51,725)
                       (5,937)
                                     $0

                                      $8,375
                                                                        ($17,725)
              10%         $837
                                          $0
                                                                     $9,350 is free
                                           $1 million
2009    35%    $327,683
Tax            (525,642)
                                                $0

Rates                                $373,650

        33%       $123,304
                 (197,959)




        28%       $48,118              $0            $171,850

                  (74,655)




                                                        $0
         25%       $20,600                $82,400
                   (26,537)




                                           $0
                              $34,000                        Obama cut
        15%       $5,100                                     taxes for the
                  (5,937)
                                $0                           middle class by
                                 $8,375                      manipulating
         10%         $837
                                                             these numbers
                                     $0
Top Rate
Top
Rate   75%
Top
Rate                    94%
       During the war
Top
Rate                91%
       until 1964
Top
Rate   77%
Top
Rate   50%
Top
Rate   28%



             Caution:
             closed
             loopholes
Top
Rate   39.6%
Top
Rate   35%
Top
Rate                      39.5

   mention the middle class tax
   cut (income-index changed)
Capital Gains
                   Taxation


capital gains

-- making money from investments
-- this is not considered “regular income” – it’s
considered something different
-- has its own special tax rate
-- its lower than the ordinary rate (for people who have
enough money to invest)
           How Rich People Make Money


Income                             Assets

-- 1.679625 million                -- 10 million at 5%
dollars                            growth
-- taxed at top rate
(assumes 35%)                         Answer:
                                     Question:
$525,642                            $500,000
                            Take a guess: how much
                                     is that?
_______________
$1,153,983                -- taxed at 15% (capital gains)
                          -- $75,000 in tax
                          ----------------------------
                          $425,000
                  Mention also about athletes
                  and how they waste money




  Paid only 13% of his
income in Federal taxes

                     His salary is symbolic
                   (100,000?). He makes his
                   money through his portfolio
          Republican tax plans:
           Top Tax rate = 25%
      Cut (eliminate?) capital gains
Cut or eliminate estate tax (inherit money)
           Herman Cain: 9-9-9

				
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posted:11/22/2012
language:English
pages:20