Peter Schiff Pays Almost 50% Taxes?

Peter Schiff tells us in the interview that he is in the top 2% of US income earners, so he must have household earnings above $250,000 per year. He informs us that he pays almost 50% of his income in taxes. Let's see if this is even possible.

If Schiff earns a MILLION DOLLARS and files as a head of household with no tax deductions or credits, he pays the following Social Security, Medicare, US Federal Income Taxes and Connecticut State Income Taxes: $ 106,800 @ 7.65% = $ 8,170.20
$ 0 to $ 11,950 @ 10% = $ 1,195.00
$ 11,950 to $ 45,500 @ 15% = $ 3,350.00
$ 45,500 to $ 117,450 @ 25% = $ 17,987.50
$117,450 to $ 190,200 @ 28% = $ 20,370.00
$190,200 to $ 372,950 @ 33% = $ 60,307.50
$372,950 to $1,000,000 @ 35% = $219,467.50
$ 0 to $ 16,000 @ 3% = $ 480.00
$ 16,000 to $ 800,000 @ 5% = $ 39,200.00
$800,000 to $1,000,000 @ 6.5% = $ 13,000.00 ------------------ $338,527.70

Schiff's federal and state tax liability combined can't be more than 33.85% of his income.

The national median property tax rate is 2.85%. So that might make his tax rate 36.7%

Connecticut has a 6% sales tax. If Schiff purchases a bit more than $200,000 in consumable subject to the sales taxe, his tax rate could be as high as 38%.

His short-term capital gains are 35% and long-term are 15%. If a major part of his income is short-term capital gains, his rate could go up a bit, but not much. If a major part of his income is long-term capital gains, his could go down significantly.

Of course Schiff did NOT pay all those taxes on his actual personal income. He avoided paying taxes on much, if not most, of his actual personal income. I'll eat my shoes if Schiff paid an honest 30% on real personal earnings. And I'll bet his quality of life was substantially increased by corporate benefits that were not taxable to him.

Is Schiff lying or is he rationalizing? Either way, his credibility is in question!

Watch the full interview:

Schiff vs. Henwood on Economic Crisis
The Real News Network, Oct 20, 2010
http://www.youtube.com/watch?v=3VyFWzc-cmg

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• Schiff
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[cedricalien]

were u even listening to the interview?

[zthustra]

@cedricalien

Oh, and American laborers are so overpaid, that he really feels that he has no choice but to send his work to China and other business friendly nations. Yes, he would just quit if he got paid less, but others should be motivated to jump on those temporary, part-time, no benefits minimum wage jobs? American laborers are just spoiled and lazy! If you are in doubt, ask Peter Schiff, he will set you straight.

Maybe Peter Schiff should move to China too?

[bubbadankness]

So, you seem to think that paying at least %40 of your earnings is a 'fair share'? You're clueless...

[LibertyMike1]

I haven't even watched the video, but looking at the numbers, I have already identified a mistake in your calculations. Employers pay 6.5% in Social Security taxes of each of their employee's income. Since Schiff is a business owner, he is paying 13% in social security taxes, because he has to pay the 6.5% of his income and the required employer match of 6.5% to the Social Security system. If you say his tax rate could be high as 38%, add an additional 6.5%, making it 44.5%.

[StockTradingMaster]

Great investigative research man. Peter Schiff is a lying a**hole that would f*ck you twice if he had another d*ck. Peter Schiff's dad is in jail for tax evasion. That whole family is f*cked in the head and does their best to not pay taxes at all. You bet the Schiff's are a tax cheat and use all the corporate loopholes to not pay as much in taxes. Also Schiff pays for reputation management services here on YouTube to some Indians for $2 per hour so ignore all the I love Schiff comment spam.

[DillonDee1]

@cedricalien -- there is no way the lying bastard is payiing 50%

[zthustra]

@dubified89

Ad hominem is really the worst way to have a meaningful conversation. Straw man arguments aren't effective either.

A "mutually voluntary financial exchange"; like when one person pays another person to mow their lawn?

It's all a casino trick and I'm not nearly tricky enough, or as you would say 'competent', to be in the game. Even if I was, I would like to think my moral scruples would keep me out.

[zthustra]

@dubified89

You haven't really thought this out. Is Schiff the human or Schiff the corporation betting? Does Schiff the human risk any personal assets that he has acquired through the provision of goods and services by his own labor? Does the Schiff the corporation waive its fees when it bets wrong? Whose money is being put at risk? Whose retirement? Are We the People creating credit/money that Schiff is risking? The Casino is such an interesting place.

[dubified89]

Also if what Schiff does is so lucrative yet so easy, why aren't you doing it? I guess it's because you're too moral to engage in such evil practices as mutually voluntary financial exchanges, and not because you're any less competent than him right? Obviously.

[dubified89]

@zthustra Of course if he bets wrong he could easily lose it all, and takes that risk, but let's not mention that. And unlike the big banks, if he fails he won't get bailed out.

[rhymeswithmishap]

@LibertyMike1 FICA is only on the first 106k of income. You cannot add it directly to the percentage. On the $1M example, the first 106k (assuming it was salary and not capital gains) would be subject to 15.3% taxes if he's self-employed. That's 16k if math escapes you. That works out to 1.634% additional on $1M income. It goes down as income goes up since

[mainteg2004]

@mason72518 Exactly. I have a client where both partners were broke and bankrupt 2 years ago. The individuals will be close to or over $250k in 2012. They now have 70 employees. If you take the 5000 hrs a year they work, they're not so highly paid per hour. I don't see any reason to punish them.

The one thing I never successfully communicate to my liberal friends is the concept of risk and reward.

[mason72518]

@mainteg2004 oh okay, I have never heard of the program. The threshold defining rich is obviously absurd. Especially when you consider that most ppl earning that income level are earning their peak incomes late in their career, after decades of hard work and, in most cases, considerably more modest compensation during the rest of their career.

[mainteg2004]

@mason72518 Lacerte is professional tax software. With a legitimate business earning $10 million, you're going to pay your taxes. I also get a kick out of the $250k threashold people use. Tell someone in Manhattan earning $250k that they're rich. Tell a doctor who's 40 years old and just paid off his student loans how he's greedy.

Peace.