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Are the people who make over 250,000 paying more taxes?

The reason I asked is because I hear people all the time saying that AIG took tax payers money to pay bonuses, So am I misunderstanding who pays more taxes. I am trying to understand this.

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Asked by Anonymous at 4:15 PM on Mar. 25, 2009 in Politics & Current Events

Answers (4)
  • I don't believe one has to do with the other. AIG accepted bailout money which was generated from the pool of money funded by taxes. They then turned around and paid executive bonuses with those funds. So essentially, they used taxpayer money to pay bonuses. The problem is how they are handling their money-- are bonuses rally necessary when you're essentially bankrupt?

    People who make $250K+ theoretically pay more taxes, but not necessarily based on percentage when you consider all of the tax credits, loopholes, etc. that need to be taken into account. For instance, because of tax loopholes, hedge fund managers generally pay only around 5-18% in taxes every year but can make in the billions, whereas the average person who makes $50K will pay approximately 25%. So while the hedge fund manager may pay millions in taxes, it's only a small percentage of overall income.

    Did that help?

    Answer by Busimommi at 4:30 PM on Mar. 25, 2009

  • Mine haven't been raised yet but we do pay a very high percentage. People in my tax bracket and above pay most of the taxes collected. So we don't need to pay anymore.

    Answer by Anonymous at 4:31 PM on Mar. 25, 2009

  • yes they pay more taxes because they make more money. Taxes will never be fair as long as it's income based. loop holes and all the people making millions will still pay more than the person making 50k.

    Answer by SylviaNCali at 6:28 PM on Mar. 25, 2009

  • What happened to those who gave back the bonuses? Does anyone know?

    Answer by LadyChamp at 7:10 PM on Mar. 25, 2009

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