Not all Americans want big Gov't. Many want less and always have.

It very simple - the productive members of society will pay for themselves and everyone else.

We have 6% (fica tax) coming out of our paychecks every payday to pay for Social Security (and another 1+% for Medicare)...that is, until your salary hits $100,000....at which point, one does not pay more in Social Security taxes. So if you make $200k, your tax rates is in effect 3%. The more you make, the lower the total percentage of fica taxes.

Applying that 6% rate on all income over $100k could very well cover the cost of the proposed health care reform.

Its very simple.....apply the same fica tax rate to all!

So a tax increase of 6% on all households with incomes of $100,000 or more - Is that what you are saying?

Isn't that the current system?

I should have said the 6% fica rate should apply to all wages/salaries, not all income.

The higher one's income, generally, the percent of that income from wages/salaries (as opposed to investment and other sources of income) goes down.

glatt - of course. It seemed like the simplest answer to the question posed.

Redux, so there is a 6% tax increase on all household wages and salaries of $100,000 or more - That correct?

They already pay 6% on on the first $100k...but effectively only pay 4.5% on their total wages (not tax on the last $50k)

Why should someone making $150k pay a lower rate than someone making $80k.

It is the reverse of the long standing concept of taxing according to ability to pay (the concept of progressive taxation that I know you dont agree with).

But this wouldnt even be a progressive tax.....6% on all wages/salaries....same rate for all.

It was an extremely simple yes/no question? Are they paying an additional 6% or not?

Please read what I wrote...I think its pretty simple.

Yes....6% rate on wages/salaries for all....and yes, that would mean a tax increase for those making over $100k.

Or hell, modify it, and only apply to the first $100K (as it currently the case), exempt wages between $100k - 250k, and then wages/salaries over $250K (or $400k family)..to protect the middle class.

That is the simple answer, thank you.

So a household with two people in it making 50k each is gonna get hit with a 6% tax increase. How well received do you think that message will be?

Huh?

Those two people making 50K each are already paying that 6%.

A household with two people making $150K each are the ones effectively paying a lower rate.... 4.5% by both not paying on their last $50k. They would see their taxes increase 1.5% by paying that 6% on the full wages.

I'll see your huh and raise you a WTH?

Its a simple payroll tax increase....apply the same 6% rate that to all wages/salaries....or exclude wages between $100k -250K. Its really not that hard.

If you make 100K or under, you are already paying that rate. If you are making over $100k, you are currently paying 0% payroll tax on wages over $100k.

ok got that part.
OBAMA IS RAISING TAXES!!! RUN FOR THE HILLS!!!

well? which is it applied or excluded?
uh - yeh ok. Happy Monkey always makes up lil graphs and charts to explain this stuff. :right:

apply the same 6% rate to all wages/salaries....or exclude wages between $100k -250K.
Two variations on the same theme.

The second option would protect those middle wage earners.

The fact remains that those workers making $100K and under are paying a greater proportion of their salaries in payroll taxes than those making above $100K.