100 PERCENT MARGINAL TAX RATE

NCPA Daily Policy Digest ^ | 6/14/2007 | Editorial

[bruinbirdman]

Last week, Democrats on the House Ways and Means Committee released a draft of their tax plan that would raise the highest income tax rate by 4.3 percentage points to 39.3 percent immediately. And because the proposal doesn't extend the Bush tax cuts, the highest income tax rate would rise to the neighborhood of 44 percent after 2010; this would lift the top federal income tax rate higher than it was even under Bill Clinton, says the Wall Street Journal.

Moreover, families with incomes between $250,000 and $500,000, the "marginal" tax rate paid on the next dollar of earned income could soar to 80 percent, or in some cases even above 100 percent. The point of this revenue grab is to pay for making families with earnings under $250,000 a year exempt from the Alternative Minimum Tax (AMT):

**Without legislation this year, the number of Americans who pay the AMT will rise as much as six-fold to 23 million.

**Even those with incomes as low as $60,000 could pay the AMT in some high-tax states.

**Maryland's Chris Van Hollen, chairman of the Democratic Congressional Campaign Committee, has said his party risks a tax revolt in 2008 without some kind of AMT patch.

So Democrats are proposing to raise taxes on three million Americans in order to exempt 20 million from the AMT, says the Journal:

**The wealthiest 1 percent of Americans already pay more than one of every three income tax dollars into the Treasury.

**Under the Ways and Means proposal, the share of all income taxes paid by the top 1 percent would rise to nearly 40 percent.

**The top 2 percent would pay roughly as much as the bottom 98 percent of all taxpayers.

Source: Editorial, "100% Marginal Tax Rate," Wall Street Journal, June 14, 2007.

For text:

For more on Taxes:

[Old Sarge]

If I had gotten what I wanted, there would be a filibuster-proof GOP majority in both houses.

I did the exact same thing you did in November: I held my nose, closed my eyes, winced, turned my head, and voted straight GOP.

So yeah, we’re both sheep - and we’ve been sheared.

[Fresh Wind]

This is sure to slow down the economy fast and big time.

They have to work really, really hard to crash the economy in time for the next election.

[Extremely Extreme Extremist]

Moving to Australia is looking better all the time.

Costa Rica looks good for me.

[Doe Eyes]

Rather than trying to eliminate the AMT, I’d rather it be rewritten as a TRUE minimum tax that hits EVERYBODY.

I agree. Also if you don't pay taxes, you don't get a vote.

[Myrddin]

Fair enough. My apologies if I offended you.

No problem. There are lots of people here on FR. It takes time to get to know people. Everyone has a position on a given topic. The signal to noise ratio on FR is better than most places.

[poobear]

“For income taxes, earn less. Cut expenses e.g. employees and unnecessary consumption as necessary to make up the difference. The net impact of “taxing the rich” is unemployment.”

Bingo my FRiend! I notice these schemes come around every so often but really get pushed every 20 to 25 years or so. Guess they figure their new batch of workers won’t get it. Come to think of it, maybe that’s why they want to import new stupid workers. Too many of us REAL American workers get it!

[DontTreadOnMe2009]

USA tax rate was previously 94 % under FDR !!!!!!!!!!!!!

http://delong.typepad.com/sdj/2009/03/top-marginal-tax-rates-over-time.html