Friday, April 20, 2012

Those Poor Rich Folks


The Wall Street Journal makes the case that the tax code is amply progressive:
What’s more, the wealthiest earners are paying a higher tax rate than they did in 2008.
Consider the following chart, which shows adjusted gross incomes and average tax rates, i.e., total income tax as a percentage of adjusted gross income less deficit:
We all know that the one percent (those making around $340,000 a year) as a group pay a higher rate than any other income group. Yet the new IRS data show that even the $1 million-plus earners (the top fraction of the one percent) pays the highest rate.
It’s only when you get to somewhere between the $10 million-plus earners and the “Fortunate 400″–the 400 highest earners–that the tax rates paid start to dip. And when they dip, they still dip to levels far above the average rates paid by 90% of Americans. The Fortunate 400 paid a rate of more than 18% in the latest period.
This isn’t to argue against higher taxes on the wealthy. Nor does it deny that some rich people reduce their taxes to well below the official rates through tax avoidance schemes and capital gains.
Yet the charts do support the previous findings that a growing number of today’s wealthy make their money from salaries rather than capital gains. And those top earners as a group still pay the highest rates in the country.
So, plain old folks who make over $1 million a year pay high tax rates, and it's only when you get to the folks making OVER $10 MILLION A YEAR WHO PAY LOWER RATES THAN PEOPLE MAKING $200,000 TO $500,000.  Just a quick question, WHY IN THE HELL IS THAT?

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