The U.S corporate tax rate (35 percent) is one of the highest in the world, although only slightly higher than most of the first world nations. However the net, after legal deductions are taken, it is less than 13 percent one of the lowest in the world.
President Barack and First Lady Michelle Obama on income of $608,6011 paid less than 20 percent total in federal income tax for 2012. In 2011 Mitt Romney on income of $13.7 million paid 14.1 percent in total income tax. Warren Buffett, worth billions, admitted he pays a much lower percentage for income tax than his secretary.
An independent contractor is one of the smallest of small businesses. A real estate agent (independent contractor) as an example with taxable income of $100,000 will pay 12.4 percent in FICA income tax and another 21 percent in regular income tax for a total of 33.4 percent.
The middle class is being penalized.
Our tax system is broken and should be the number one issue for all congressional candidates this November.
Every Sunday in the “Eyes on Washington” column, the Star-Telegram publishes contact information for all our congressional representatives in North Texas.
Contact yours and ask for their plans to fix our broken tax system. Make them earn your vote this time.