Tired of Obama's lies to college co-eds about millionaires, such as his speech to the FAU students?
"It's just not fair that higher income Americans pay a lower rate than lower income Americans."
Of course, TurboTax 2010 says this isn't the case at all.
Let's just plug the numbers into TurboTax and see what it says about Marty Millionaire who earns a straight $1,000,000 on his W-2 from a Florida based company.
(Full disclosure: I am not a millionaire, but like 99% of people in the US would love to be one.)
Marty Millionaire earns exactly 1,000,000 on his W-2 wages.
He is married to Missy Millionaire (who is stay at home)
They have one child, Mike, aged 5
They are married and filing jointly
His total tax--even taking out 60,000 in itemized deductions for mortgage interest and property taxes on their home--is $298,976.
That is 29.8% effective rate of Federal Taxes on Millionaires!
Now let's take Marty Millionaire's secretary, who earns $50,000, married, husband stay at home, one child, and takes the Standard Deductions (which are 11,400) and a personal exemption of 10,950, so she only pays on 27,650.
Total Taxes? Just $3314. This is 6.6% effective tax rate on secretaries.
Obama is a liar!!!!
Of course the vast majority of people who earn a million or more do it by owning their own small business. And those people pay not only income tax but also Self Employment Tax at double the rate of the wage earning paying FICA (social security tax).
Here's another factoid: most millionaires in America (those with a liquid net worth of a million or more) got it the old fashioned way, they earned it and saved, saved, saved. Many are senior adults who held "normal" jobs but planned and were frugal. They avoided debt, didn't buy things they couldn't afford, and had goals. Obama hates this! They don't need the government. They have a million or more in annuities or other investments and live off them.
Oh, and those millionaires who run a small business? They create 90% of all US jobs!
Check our "How to Make A Million Dollars" on the How Stuff Works web site for a reality check. Millionaires are not the Monopoly Man with his top hat. That's the image Obama want sot create in your mind. Some greedy guy who wins by everyone else losing. But the vast majority of millionaires in America get there by creating things people want (jobs, products, services) and freely pay for with their own money. Progressives, however, like to spend other people's money, and receive other people's money by legislative decree, not by honest work.