Numbers can be misleading.

Recently, income tax rates for the riches are back in the spot lights again. The suggestion to reduce the country’s riches income tax rate never goes well with the rest 99% of us. But if we look at the absolute dollar figures on who is paying what, we will see a different picture.

The US government now taxes individuals at the rates between 15% and 35%*. It looks like our progressive tax system does what it is designed for: the richer, the higher tax rate. For the ones making $40,000 taxable income last year, at a rate of 15%, each of them will have to pay $6,000 to IRS. And for the others who made more than $379,150, at an effective rate of 29%, everyone in this well-off group owes Uncle Sam a whopping $110,017 each.

Now let us look at how much income tax the country’s ultra riches paid, say, at a rate of 15%, which incidentally is the lowest tax bracket on IRS’s book. With a taxable income of $5 million, the tax bill at 15% would come to $750,000!

A lower tax rate does not mean lower tax in dollars and cents.

Besides, making the riches pay more taxes is not a solution to reduce public debts. The more taxes the governments can collect, the less likely our governments will become smaller from where they are now. - Ayee

*Internal Revenue Services’ 2012 Tax Tables