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Entry: Greenspan's Gambits Link: http://www.takimag.com/site/article/greenspans_gambits#5408 Post contents: "Joe Populaist" apparently doesn't get his tax data from the information released by the Internal Revenue Service. I'd like to know what his sources are. He writes: "To clarify, the 'rich' are the top 20% who earn 90% of the national income." According to theTax Foundation, in 2004 (the last year for which they provide data) the top 25% earned only 66.13% of personal income, and paid 84.86% of Federal personal income taxes. This information may be found at <www.taxfoundation.org/news.show/250.html> Joe writes: "It is payroll taxes that provide the vast majority of federal revenue. Approximately 67% I believe." According to the Tax Foundation's Special Report 139 (March 2006), In FY 2004 individual income tax represented 43.8% of the Federal tax burden, while social insurance (i.e., the payroll tax) represented 39.7%. This information may be found on page 8 of the report, which is available as a .pdf file downloadable from the Tax Foundation's website. Joe writes: "Anyone making less then [sic] $100,000 pays more in payroll taxes then [sic] he pays in income taxes." The payroll tax combines a levy of 6.2% to cover Social Security OASDI (Old Age, Survivors and Disability Insurance) and 1.45% to cover Medicare. The 6.2% OASDI rate is levied on all wages up to a ceiling, which in 2006 was $94,200. The 1.45% Medicare rate is levied on all wages without a ceiling. The amount withheld from an employee's paycheck is matched by an equal amount that is levied against the employer. Thus, only half of the percentage of Federal tax burden reported by the Tax Foundation (citation supra) as "social insurance" is borne by the employee. Assuming for the sake of simplicity a single taxpayer with a 2006 taxable income of $100,000, all of which is wages, the payroll tax levied against this taxpayer would be $7,290.40. According to Schedule X of the 2006 Federal income tax schedule, this taxpayer is in the 28% marginal tax bracket. His income tax would be $21,557.50. The schedule may be found at <www.irs.gov/formspubs/article/0,,id.150856.00.html> Joe's assertions in the above instances are not borne out by the published facts and figures. I've not bothered to investigate his other claims but have no reason to believe that there is any more truth in those. Sent at: 2008 11 22