As the rich become super-rich, they pay lower taxes. For real.

[applegrove]

As the rich become super-rich, they pay lower taxes. For real.

By Christopher Ingraham at the Washington Post

http://www.washingtonpost.com/blogs/wonkblog/wp/2015/06/04/as-the-rich-become-super-rich-they-pay-lower-taxes-for-real/

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One of the cornerstones of American income tax policy is that taxes are progressive. People who make more money devote a higher share of their income to federal income taxes than people who make less money. That allows for a redistribution of wealth that lowers inequality.

That's how it's supposed to work, at least.

But new data out this spring from the IRS gives us a closer look of how the income tax works at the pinnacle of the income distribution -- not just the top 1 percent, or even the top 0.1 percent, but among the rarified realm of the 0.01 and even the 0.001 percent. Those latter two categories are new in the IRS report this year, reflecting a growing public interest in the ultra-wealthy and their effects on the economy.

The IRS found that as you go from being merely wealthy (the 1 percent) to super-duper wealthy (the 0.001 percent), your average federal income tax rate actually goes down. In other words, the progressivity of the federal income tax starts to fall apart at the upper reaches of the income distribution. Take a look.


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[John_Doe80004]

1. problem is

with years international agreements, treaties, and such, these corporations threaten to take their company to other states and even other countries if the state and/or federal government doesn't meet their tax demands or give them favorable government policies.

some how we need to take this leverage away from companies and put the leverage back into the hands of we the people and the governments who are suppose to speak for and represent us and also make these governments accountable to we the people and not we the billionaires and corporations.

look at what GE is doing to Connecticut. the state raised taxes on GE so they threw a temper tantrum and said they are packing up their headquarters and going to another state.

and meanwhile at the federal level not only did GE pay zero in taxes they got a federal rebate in the billions while at the same time shipping 57,000 jobs overseas.