One thing I hear more often than I should is that
low paying or lower paying jobs are “not so bad” and even “profitable” because
of the high rate of taxation on higher income jobs. The logic is the higher
paying job one has, the more taxes are taken out of that paycheck. So it ends
up being “better” to have a low paying job. This is a ludicrous outlook. It is
almost insultingly condescending. First of all no matter the rate of taxation
of a higher income job, one is still making more money with that job than a
person with a lower paying, minimum wage job. According to NerdWallet.com, the
incomes from lowest to highest are as such: $0-$9275, $9276-$37650,
$37651-$91150, $91150-$190150, $190150-$413350, $413350-415050, $415050 or
more. The tax rate starts at the lowest income at 10% tax rate, then goes up to
$927.50 plus 25% of the amount over $9275, then goes up to $5183.75 plus 28% of
the amount over $91150, then goes up again to $46,278.75 plus 33% of the amount
over $190,150 then goes up again to $119,934.75 plus 35% of the amount over
$413,50, and for the final and highest income the tax rate on that is
$120,529.75 plus 39.6% of the amount over $415,050. And all of that is only for
Single Filers, nothing to do with if one is Married Filing Jointly or if you
are a Qualifying Window(er). Minimum wage jobs such as working in a fast food
restaurant or working at a gas station, for example, should be paid more. No
one could survive on that income alone, especially after taxes are taken out.
Higher paying jobs get more benefits than the lower paying ones, but everyone
should get the same amount of benefits because everyone has the same amount of
rights no matter your status and level of education that determines the job you
get. Familiesandwork.org supplies a table that displays the following
information.
There is clearly a dramatic hourly wage difference
between low income worker, middle income worker and high income worker. Of
course every job comes with a different set of responsibilities, and each
should be rewarded according to those responsibilities, it doesn’t mean that
the low income jobs should be paid so extremely little. The cost of living in
the United States of an average person is $20,194, according to opensourceecology.org.
That is based strictly on the lowest cost of every aspect of living, such as
rent or mortgage, electricity, food etc. It isn’t always possible to find the
cheapest of each no matter where one lives. This piece of data is only to prove
that it is nearly impossible to survive on a low income salary, no matter how
little taxes are taken out.
This post is not showing up correctly either the Chrome or Internet Explorer browsers. There is one big blob of text and ther table is blank.
ReplyDeleteWho are the multiple sources telling you that the taxation system is regressive?
ReplyDeleteIs http://opensourceecology.org/wiki/Cost_of_Living the source for the $20,194 figure? The latest revision was in September 2015, with most of the page being written in 2009.