5 ms·
Minimum wage workers aren't paying any taxes after standard deduction and exemption. Capital gains is now 20%.
by encoderer 11y ago
Minimum wage workers aren't paying any taxes after standard deduction and exemption.
Capital gains is now 20%.
- RockyMcNuts 11y agofair enough, the top bracket (over $400,000) now pays 20% on long-term capital gains and dividends. http://www.fool.com/retirement/general/2015/12/14/long-term-capital-gains-tax-rates-in-2016.aspx http://www.fool.com/retirement/general/2015/12/14/long-term-... the idea that minimum wage earners aren't paying taxes is a nonsensical talking point with no basis in reality. It only works if you disregard FICA, which is economically unjustifiable and not done in other contexts (like quantifying big government's size and tax bite). The bottom line is there is a 15.3% wedge between what the minimum wage employer pays and what the employee receives, and that's what has economic impact. The EITC offsets a part of the wedge, but only a part of it.