"Remember that my (Mr. Median) rate goes from 10% to 15%. According to my math 15-10=5 & 5 is 50% of 10, so what I really got was a 50% increase. Mr. Wealthy, on the other hand... went from 35% to 39.6% percent. Same math... 39.6-35=4.6 & 4.6 is only 13% of 35. Boy am I getting screwed... I get a 50% increase whereas Mr. Wealthy only gets a 13% increase. Not fair! Right? So at the very least (again if congress does nothing but nap), then it would only be fair that Mr. Wealthy get the same 50% increase... same as me. So instead of going to 39.6%, Mr. Wealthy's rate would go to 52.5%. Do the math 52.5-35=17.5 & 17.5 is 50% of 35.
So the "old" way I pay 10% of my income. 10% of $50,000 = $5,000, and Mr. Wealthy pays 35% of $2,000,000 = $700,000.
The new way I pay 15% of my income, 15% of $50,000 = $7,500, and Mr. Wealthy pays 52.5% of $2,000,000 = $1,050,000.
Seems fair to me... what about you?"
Well as you might expect I got some feedback from folks... said they were from Congress... (Congress is reading my Blog... Amazing).
Anyway the feedback from Congress was that a 50% increase was just too much, and I should remove it (the 50%) immediately. Obligingly, I did so... Here is how the TAX would go now.
Me: Mr. Median at 15% bracket. I reduce that by the same 50% that it was increased by, so I reduce it to 7.50% (50% of 15 is 7.50 Right? And 15-7.5 is 7.5). Hey... isn't this great... I raised it up by 50%, Congress complained "too much" so I lowered it by 50% and now I am in a 7.5% bracket. So... now my TAX is only $3,750. Great, I love it... Thanks Mr. Congressman, I went from $5,000 to $7,500 and back down to $3,750. Just saved me $3,750 simply by increasing my TAX rate by 50% and then lowering it by 50%. Gee, this is GREAT... I now have some extra money that I can put into the economy (I spend it instead of giving it to "BIG" to spend!!!??? What a novel idea), and maybe even help create jobs. I think I will go out and buy a new dishwasher, since my 8 year old one just crapped out (FOR REAL)
Owww, what about Mr. Wealthy you ask. Well unfortunately, to be fair the same 50% reduction is also called for. Mr. Wealthy, who is now in the 52.5, also gets the 50% reduction. 50% of 52.5 is 26.25, so Mr. Wealthy gets a new rate of 26.25 (52.5-26.25=26.25). Hey... this is even lower that his original rate of 35%... How did that happen? So Mr. Wealthy now only pays 26.25% of his $2,000,000 ($525,000) instead of 52.5% of 2,000,000 ($1,020,000). Works out to be Mr. Wealthy just saved $525,000 ($1,020,000-$525,000=$525,000). Gee... makes my $3,750 savings look kind of weak compared to Mr. Wealthy, but hey... what the heck. Mr. Wealthy now has an extra $525,000 to apply to his Company's "New jobs Campaign".
Now seriously folks, I hope you can see that I have made some "comical" errors in my mathematical logic, (but nothing funny about "my" new TAX rates) and at the same time was just having some fun; except for the dishwasher... that is for real.
But sometimes, I am not so sure about the "real" Government mathematicians. How does it go? Ask and accountant what 2 + 2 is and the answer is... "What do you want it to be?"
Just Say'n
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