BuffetImmeltArticle

“Workers Making $30,000 Will Take a Bigger Hit on Their Pay Than Those Earning $500,000 Under New Fiscal Deal — Middle-class workers will take a bigger hit to their income proportionately than those earning between $200,000 and $500,000 under the new fiscal cliff deal, according to the [supposedly] nonpartisan Tax Policy Center. Earners in the latter group will pay an average 1.3% more — or an additional $2,711 — in taxes this year…” This, by the way, is just the FICA tax, I believe, ’cause there’s a lot more…

They’re gonna be paying a lot more than $2,000. (laughing) That’s just on this one tax, the payroll tax. The people that earn “between $30,000 and $200,000 will see their paychecks shrink by as much as 1.7%,” and 1.7% of 30 grand is a lot more than 1.3% of 500 grand. So the people that make 30 or 40 grand are going to be out about $1700. The people who make 500 grand are gonna be out $2700.

Now, the theory is that if you make 500 grand it’s easier to miss $2700 than if you make 30 and miss $1700. And, by the way, folks, this is all true. And, you know what? There’s nothing that can be done about it unless you confiscate the money from the rich. There’s just no way that this is ever going to change. It’s mathematics. And this leads us into an argument debate over flat tax.

One of the reasons a flat tax is gonna have such a tough time is if you have a 20% tax rate for everybody, well, 20% of $1 million is a lot less than 20% of $70,000, let’s say. So the critics will come along, “That’s just not fair! You need to be taxing those people that are a millionaires at 80%!” By the way, some Democrats are suggesting that we go back to a top rate of 70% now. That’s what it was pre-Reagan. Because the notion is…

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