We live in insane times.
So insane that someone live say Nancy Smith who works $10/hour in a McJob pays a higher combined income tax and payroll tax rate then someone who lives off interest income and is worth $100 Million Dollars.
I think current payroll taxes are around 10% for the employee; matched by 10% for the employer (this is not a perfect # just an estimate) .. Even if someone pays no income tax or very little, which is likely since 10x40hours/week = $400/week and times 52 weeks a year equals $20,800.
And many Americans make less then this all around the country. So let's just say this person makes approximately $21,000 and pays 20% payroll taxes and no income taxes. Of course, they only see the $2,100 in payroll taxes that are shown by their paystubs.
Let's say this person is also lucky enough to have health insurance at their job which by no means is a given in a low-wage job.
And let's say for her family it costs $100/week, which sadly is a low estimate for the cost of health insurance for a family of 4 in a low wage job.
This means that she in making $300/week. And she is having another $40/week in payroll taxes, giving her $260/week.
Let's say beyond this she went to college for 4 semesters and didn't graduate and has $100/month in student load debt.
This is $1,200/year which is much less then most students who went to college recently pay.
So this person makes $260/week*52 weeks = $13,520 year - $1,200 for student loan debt, this person is down to $12,320 year .. or $1,026.67 a month for all expenses.
This person would require assistance just to get by with 2 kids and a husband even if he made another $1,000 a month.
And the Republican party says that simple help like food stamps for $200/month is welfare and causes dependency.
Meanwhile, Huxley Rockefeller has a $100 Million Dollar trust fund.
His trust fund is invested through a conservative hedge fund and makes 8% a year.
This gives him $8 Million a year in interest income.
This interest income I believe is taxed at 15% for capital gains equaling 1.2 Million in taxes. But leaving $6.8 Million in income.
Mr. Rockefeller can afford excellent insurance for his family of four that costs $2,000/month which is a neglible bill that he autopays.
He also gives money to a lobbyist that keeps the capital gains tax % low and has petitioned for 0% Capital Gains Tax.
His basic expenses and overhead like rent and utilities are negligible and he spend approximately $1 Million/year for excellent meals, a Central Park South Apartment, and private school for his children.
This leaves him $5.8 Million dollars in interest income that can accumulate the next year.
Insanely, Mr. Rockefeller pays less of a percentage in total taxes then Ms. Smith.
Mr. Rockefeller earns over $5 Million Dollars a year to his net worth. Ms. Smith is likely to have to take on debt to just get by and say gains $5,000 debt/year.
The sad thing is this isn't really theoretical.
We are the 99%