General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsTax fairness (This article is a few years old.)
* The richest 1% of Americans own 35% of the nations wealth. The bottom 80% own just 11% of the nations wealth.
* In the 1950s and 1960s, when the economy was booming, the wealthiest Americans paid a top income tax rate of 91%. Today, the top rate is 43.4%.
* The richest 1% pay an effective federal income tax rate of 24.7% in 2014; someone making an average of $75,000 is paying a 19.7% rate.
* Taxing investment income at a much lower rate than salaries and wages are taxed loses $1.3 trillion over 10 years.
* 1,470 households reported income of more than $1 million in 2009 but paid zero federal income taxes on it
For the purpose of the federal income tax, how about INCOME IS INCOME however derived? Have a $500,000 salary, collect rental profits of half a million bucks or get dividends and stock income of $500,000 doesn't matter, it's all taxed the same.Currently, the top statutory tax rate on investment income is just 23.8%, but its 43.4% on income from work. To reduce this inequity, we should raise tax rates on capital gains and dividends so they match the tax rates on salaries and wages. These loopholes lose $1.3 trillion over 10 years.
https://americansfortaxfairness.org/tax-fairness-briefing-booklet/fact-sheet-taxing-wealthy-americans/
My understanding is that the argument for lower taxes on income for investments and capital gains is that the capital invested creates jobs and encourages economic growth and provide wages to employees. IMO when a CEO is earning/profiting from his position 300 times more than his average employee, that employee needs to be paying a lower tax rate. The simple way to make this happen is to treat all income the same.
KPN
(15,642 posts)and couple that with progressive tax cuts for all households earning less than $250,000 or so. Its about time that we force the comparatively well off and wealthy who want a strong defense and a strong economy to pay for it by permanently reducing the tax burden on the middle and lower class. Reducing the average persons tax burden will strengthen the overall economy for everyone, not just those who profit from investments or are otherwise wealthy.
Midnight Writer
(21,745 posts)TheFarseer
(9,321 posts)Now they are bitching about they can't get people to work - so put the tax incentives on working instead of investing. Simple.
thatdemguy
(453 posts)First no one paid them, the actual taxes collected where very similar to what is collected these days. Due to everything being a right off, especially every dime of interest. The rich avoid the tax rates now using loans against their stock portfolio, this would just allow them to pay even less taxes not. I am all for raising taxes on investment income to the same level as regular income, except increases on primary homes. just because grannys house is not worth more and she moves out to a smaller house does not mean she should be taxed on the extra money.
The problems is it wont fix anything the mega rich will still find ways, that are legal, to pay less taxes than the rates imply they would.
I am all for a national sales instead on an income tax. Yes its a freeper idea but it works. First 50k you spend a year you get refunded, after that do a 10-30% sales tax. It also goes after generational wealth, you get left millions in a trust, no taxes are paid on it, but use that money to buy a new jet and now its taxed at what ever %age is decided. It would also make recycling and buying used goods more attractive, instead of going to buy a new tv for 1k, you might buy a used one for 250 and then the used one does not get thrown in the trash.