Posted on 03/13/2020 8:44:06 AM PDT by karpov
...
According to the IRS, the top 0.01% of earners—those with incomes above $10 million—paid a 24.8% effective federal income-tax rate in 2018. This isn’t very different from the 25.3% the group paid in 2017, and is higher than the average rate of 22.5% on the same group during the George W. Bush administration. As these rates only encompass federal income taxes, most filers can expect to add another 8% to 12% of income from other forms of taxation, placing their total burden well above the Saez-Zucman numbers.
How does that affect the claims of regressivity? It’s true the remainder of the top 1% (those with incomes between roughly $500,000 and $10 million) paid a slightly higher effective rate, at 26.5%, than the top 0.01% did. But tax rates drop rapidly from there, with filers in the $50,000 to $75,000 reporting bracket (approximately the median U.S. family income) facing an average federal income-tax rate of 8.4%.
People who earned between $15,000 and $40,000 paid an average federal rate of merely 4% of their adjusted gross incomes in 2018. And thanks to the earned-income tax credit and others like it, the poorest earners paid very little if any federal income tax at all.
In short, the federal income-tax structure still places the unambiguous bulk of its burden on the highest earners. The Trump tax cut hasn’t changed that. In 2018, the top 1% of U.S. earners paid roughly 37% of all federal income taxes. The top 5% paid around 58%. This suggests that policy makers wishing to mitigate regressive features of the tax system should look elsewhere. State and local sales and property taxes may be a more promising area for reform.
(Excerpt) Read more at wsj.com ...
Gee. Da democrat propaganda get it wrong. Again.
Didn’t I read that 50% of Americans don’t pay any tax?
24% is too low for $10+ million yearly income.
That would be my marginal tax rate at $84,200 AGI.
btt
maybe more than 50% by now
Flat tax and tossing progressivism on the ash heap of history would do nicely.
Like Robert Kiyosaki says: “You can’t tax the rich. They don’t have jobs.”
And you know who they are too
Why should anyone pay a higher or lower rate than you do?
So simple reason, can’t understand why did not figure it out.
24% money loss makes a huge dent in my life style. It makes a difference in where I can send my kids to college, which neighborhood kids can attend high school, which medical treatment I can afford. If I made $10 million every year, I would be happy to pay $5 million in tax to help my fellow Americans and won’t make an iota of difference in my lifestyle.
I have no problem helping my fellow American citizens by paying higher tax rates if I am making $10 million per year. I guess I am not selfish, cold hearted, who cares not much for those Americans who are financially strapped.
Sorry, not buying,
With a flat tax you do pay more the more you earn.
Progressive taxation though is an abomination. Right up there with the politics of envy.
I can go with flat tax so long as it starts near median wage levels. Assuming family median wage is around $60k/year, first $48k (80% of current median income) EARNED income should be tax exempt and then apply flat tax for all income above that level.
We want incentive for low wage earners to keep working instead of collecting welfare.
FAIRtax would accomplish both of your objectives.
“Progressives” would disappear, and EVERYBODY would pay their tax at the same at the retail checkout counter!
That is why we call it the FAIRtax!
Learn more at https://www.bigsolution.com
also... by buying used goods, one can deny government their blood monies...
bonus
Except, we are talking effective tax rate. The rate of the accumlated brackets
If you are single, you pay 10% on your first $9,699,
12% on the dollars $9,700 to $39,474,
22% on dollars $39,475 to $84,199,
24% on dollars $84,200 to $160,724,
32% on dollars $160,725 to $204,099,
35% on dollars $204,100 to $510,299
and 37% on dollars $510,300 and above.
This, of course, is on your adjusted gross income after deductions (of at least $12,200 if you're single). Then come any refundable tax credits if you qualify.
So, lets say your total income was $90k (assuming no interest income or other income) and you only take the standard deduction, that puts your AGI at $77,800, you'll pay $969.90 in the first bracket, $3,584.88 in the second bracket and $8,431.50 in the third bracket, for a total tax liability of $12,986.28, which is an EFFECTIVE tax rate of 14.4% on your total income (assuming no tax credits to reduce your tax liability). Granted, this is just your federal income taxes, if you pay state income tax you obviously will be paying more.
Thank you for making my point with actual numbers.
Again my point was that $12,986.28 taken away from my family is severe dent in my lifestyle. I couldn’t send kids to good schools by affording a house in a desirable school district, and further I couldn’t afford to help deserving kids with college tuition, and if a big medical bill comes my way, I will be heading to bankruptcy court.
On the other hand if first $48,000 income was tax exempt, and then tax brackets started at 15% upto double median family income of 120k, my tax would be (90k-48k exempt)-12200 standard deduction boils down to $4470 tax.
That would allow me to save 12986-4470=$8516 which would go a long way from falling into bankruptcy situation with a big medical bill.
On top of everything my proposal would win huge number of middle class votes now going to democrats. I would rather republicans keep WH, Senate & House than lose to democrats who will make abortions paid by tax payers, cut military spending, dismantle the partial wall on southern border, import low skilled immigrants, and appoint justices like Sotomayor & Ginsburg.
Amen!
You should be working to lower taxes across the board then, instead of trying to spend other people’s money.
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