Re: POTUS 45.21 STAND for our great National Anthem
Don't mistake actually paying taxes with a fair and equitable rate.
I don't doubt that rich people and business owners pay taxes. Not doing so is too risky not to.
But is their portion fair or not. For that, I suggest everyone go to IRS.GOV and look at the data. You will see that there's a peak of actual tax rate just below $1M earned, and above that, the effective rate goes down (and it's pretty flat from $100k to $1M). So far that the richer you are, you end up paying almost the same as some lower middle class people.
This is not exactly what the progressive tax rate would suggest. The #1 reason, according to the IRS, is unearned income in the form of long term capitol gains. So if you have the means to NOT WORK, you can pay 15% tax on your long term bet that just sits there and does nothing. Which is also to say- the richer you are, there's more incentive to not work and not contribute to society, (such as being a CEO). As you pay only 15% base rate vs. over 33% base rate on your income.
This is freaking stupid and needs fixed. But that's never going to happen with a real estate person running the country, since real estate increases count as capitol gains.
Income is income, should not bias it to one way or another like we do. Fix that, and we end up fixing multiple things at the same time- a huge tax hole for people with means and the rather obvious incentive to not work and really contribute.
BTW, it's fair to note- money tied up in capitol gains is also money that does not flow through our economy. Which is what is needed for growth.
Originally posted by SJHovey
View Post
I don't doubt that rich people and business owners pay taxes. Not doing so is too risky not to.
But is their portion fair or not. For that, I suggest everyone go to IRS.GOV and look at the data. You will see that there's a peak of actual tax rate just below $1M earned, and above that, the effective rate goes down (and it's pretty flat from $100k to $1M). So far that the richer you are, you end up paying almost the same as some lower middle class people.
This is not exactly what the progressive tax rate would suggest. The #1 reason, according to the IRS, is unearned income in the form of long term capitol gains. So if you have the means to NOT WORK, you can pay 15% tax on your long term bet that just sits there and does nothing. Which is also to say- the richer you are, there's more incentive to not work and not contribute to society, (such as being a CEO). As you pay only 15% base rate vs. over 33% base rate on your income.
This is freaking stupid and needs fixed. But that's never going to happen with a real estate person running the country, since real estate increases count as capitol gains.
Income is income, should not bias it to one way or another like we do. Fix that, and we end up fixing multiple things at the same time- a huge tax hole for people with means and the rather obvious incentive to not work and really contribute.
BTW, it's fair to note- money tied up in capitol gains is also money that does not flow through our economy. Which is what is needed for growth.
Comment