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In reply to the discussion: President Obama has done more to help the poor and middle class than any President since LBJ [View all]JDPriestly
(57,936 posts)taxes because they pay a higher marginal rate than the rest of us.
I'm not sure I understood your post. The truly rich do not pay much in payroll taxes at all except for the employer's share for the employee. What do you mean?
If you are talking about Social Security benefits, then I have this to say.
The average person on Social Security does not have enough income to be subject to taxes.
Also, it depends on how you define "rich." Older people who bought houses will probably have some equity if not own their homes. Also, older people should have more savings than younger people. Right now, those savings probably produce no or very little income.
So if you judge a person's wealth by their income, the percentage of Social Security received by the wealthy should be much, much lower than your figures suggest I think. If you measure wealth by assets, then it will still probably be lower.
Why do I say that? Because the wealthiest Americans do not receive any or much of their income from earned income that is subject to payroll taxes. The truly rich, the 1% get bonuses, stock options, carried interest, dividends, capital gains and those income sources are not only taxed at low rates in some instances but are not subject to payroll taxes.
Further, payroll taxes are only paid on the first $110,000 that a person earns. I'm sorry, but I don't think those numbers can be correct.
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