How The US Tax System Works

TaxBlocksCalculator_43_0Whenever Republicans propose tax cuts for everyone, liberals always charge it is tax cuts for the rich. This constant mantra from the liberal left is a worn out lie and proves that liberals have no clue as to how the US Tax system works. So let me try to educate these low info liberals. Liberals always listen and believe the rhetoric from their democrat leaders that tax cuts are just for the rich. The liberal mind does not allow them to analyse and independently research and break down this false mantra.

The Federal Income Tax System, is called a marginal tax system. Meaning, the more money you earn, the more you will pay in Federal Income Tax. Which means the opposite is also true for those earning less money. The less you make the less you pay in Federal Income Tax. There are tax brackets which determine what rate or percentage of your income you will pay based on how much you earn. The table below is the tax brackets for 2014.

2014 Tax Brackets

So a person who earns $25,000 in a year will pay 15% in Federal Income Tax which is $3,750. A person who earns $500,000 in a year will pay 39.6% in Federal Income Tax, which is $198,000. Keep in mind that a person who makes $9,075 (or $18,150 for married couples) or less pays zero dollars in Federal Income Tax.

I hope you dumb liberals are still with me. Pay attention now, I’m trying to educate your very feeble minds.

So when Republicans propose across the board tax cuts, which means a lower percentage of tax in each tax bracket and/or perhaps the elimination of a tax bracket or two, EVERYONE will pay less money in real dollars, in Federal Income Tax, yes even the rich. And yes, the rich will get more in actual dollars by a tax cut because they pay a lot more in Federal Income Tax. In the above example, the guy making $500,000 a year paid $198,000 in Federal Income Tax. While the guy who makes $25,000 a year paid $3,750 in Federal Income Tax. So the guy making a half million paid $194,250 more in Federal Income Tax than the guy who made $25,000. Meaning, an across the board tax cut will benefit both parties in the example. Yes the rich guy will save more by a tax cut, because he paid $194,250 more than the other guy. A married couple who makes $18,150 or less will pay zero in Federal Income Tax no matter what happens to the tax code because they paid zero dollars in Federal Income Tax to begin with. So when liberals advance the narrative that it is just tax cuts for the rich, it is one big lie.

Now if you are too dumb to comprehend the simple example above, perhaps this example will help you put it all together.

How Tax System Works

This entry was posted in Democrats, LIberal Agenda, Liberal Media, Media, Media Bias, National Politics, Politics, Republicans. Bookmark the permalink.

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