If he meant what I think he meant then the figure is pretty accurate. Except that the percentage that pay 0 or negative income tax is higher.
A quick google search gave me these numbers:
%37 pay 0 or negative income tax
%42 of taxpayers pay higher payroll tax(FICA) than income tax
%74 of taxpayers pay higher payroll tax than income tax if you include the portion paid by the employer as part of that figure, which it technically should be.
(payroll tax is about %15 btw)
I am assuming what he is pointing out is that since A LOT of FICA isnt really used for social security/medicare, the majority of that should be reclassified as income tax. Especially since FICA is capped for earners who make over 100K. So the real percentage paid to government for any type of tax for the middle class is actually quite a bit higher than for the wealthy. Obama and McCain when they talk about tax increases / cuts are only talking about income tax.
Payroll tax - Wikipedia, the free encyclopedia
The Forgotten Payroll Tax - Gregory Bresiger - Mises Institute
Guess Who Really Pays the Taxes — The American, A Magazine of Ideas
Media Matters - O'Reilly's tax falsehoods: 50 percent "don't pay any federal income tax," estate tax "unconstitutional"
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Last edited by baldylox; 10-15-2008 at 09:59 PM.