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Reply #29: How much you make does not reflect whether you are rich, or not. [View All]

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JoePhilly Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Aug-11-10 08:58 PM
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29. How much you make does not reflect whether you are rich, or not.
Example ...

1) You are a kid from a poor family, you went to college and now have 100k in student loan debt. Because of your education, you got a job making 100k a year. That income is taxed at about 30%.

2) You are Paris Hilton. Mom and Dad paid for college, and you have no student loan debt. You parents have also been funding a trust fund 10k every year, no taxes, which is now worth a few million dollars. Your dividend income is about 100k. That income is taxed at about 15%.

So ... here we have 2 people, both making 100k a year, one taxed at 30%, one taxed at 15%.

Which one is rich???

The GOP avoids this distinction because the super rich don't actually work, and when they do, they defer salary, and use investment income to reduce their tax rate.
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