Check this out.
Using 2008’s Federal Income Tax Brackets for Married Filing Jointly, I ran some numbers comparing the tax burdens for two incomes. First, here’s a look at the 2008 Federal Income Tax Brackets for Married Filing Jointly:
Using those numbers, I ran the numbers for two different taxpayers. One taxpayer (Joe) has a taxable income of $50,000 and the other (Pete) $500,000. Here’s what their tax burden looks like:
So, Pete makes 10 times more than Joe but pays nearly 22 times more in taxes.
I have a hard time understanding what Obama means when he says it’s time for people with higher incomes to start paying their fair share in taxes.
Oh, and I didn’t even mention the AMT, which I think would most likely would affect someone with a taxable income of $500,000, making their tax burden even higher. I could be wrong about that as I’m not exactly sure how the AMT works.