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Obama appears to be putting anyone earning $1 million or more against the wall next to the IRS building.
We we taxed everyone earning $1 million and more at a 80% tax rate what impact would this have on the national deficit?
It should be noted if taxed at 80% anyone filthy enough to earn over $1 million dollars would be left with close to nothing once state and local taxes were paid.
As for the nations current financial position consider the following:
US Tax Revenue: $2,170,000,000,000
Federal Budget: $3,820,000,000,000
New National Debt: $1,650,000,000,000
National Debt: $14,271,000,000,000
We need $1.650 trillion to balance the budget.
How much would an 80% income tax (no deductions either) raise?
not a whole lot. understand that those making more than $1 million per year will figure a way to either get close to, but not make that thresh hold, or will move their companies out of the country so they dont have to pay the surtax. every time a millionares tax has been instituted, the millionares left the area. witness what happened in maryland and other states when that happened.
We'd raise more than $1.65 trillion, but that tax rate is too high. (It takes a lot for me to say that.) Why don't we reinstate the estate tax at a 50 percent rate for estates over $2 million instead?
We'd raise more than $1.65 trillion, but that tax rate is too high. (It takes a lot for me to say that.) Why don't we reinstate the estate tax at a 50 percent rate for estates over $2 million instead?
No it wouldn't. According to 2009 data on the IRS website, there were 236,883 tax returns with AGI > $1M, representing $727M of income. Multipling by 80% would result in $582M of tax revenue. Not additional tax revenue, total tax revenue, since that money is already taxed. That income generated $177M in taxes in 2009. So the OP's proposed rate, assuming he means total tax rate, will generate about $405M of additional tax revenue.
I think a tax rate like that would be devastating to the economy. Money would leave the USA faster than you can imagine.
As for the estate tax - I could entertain higher estate tax rates on "dynastic" wealth transfers (say > $1B), but I full expect to die with more than $2M of wealth and I think I should be able to pass it on to anyone of my choosing without taxes paid by the recipients. It does not matter whether or not they earned it or not. I did - by virtue of working a lifetime to earn it and pay taxes on it multiple times.
We'd raise more than $1.65 trillion, but that tax rate is too high. (It takes a lot for me to say that.) Why don't we reinstate the estate tax at a 50 percent rate for estates over $2 million instead?
Better yet, why don't we reduce government spending... no need to increase anybody's taxes.
No it wouldn't. According to 2009 data on the IRS website, there were 236,883 tax returns with AGI > $1M, representing $727M of income. Multipling by 80% would result in $582M of tax revenue. Not additional tax revenue, total tax revenue, since that money is already taxed. That income generated $177M in taxes in 2009. So the OP's proposed rate, assuming he means total tax rate, will generate about $405M of additional tax revenue.
I think a tax rate like that would be devastating to the economy. Money would leave the USA faster than you can imagine.
As for the estate tax - I could entertain higher estate tax rates on "dynastic" wealth transfers (say > $1B), but I full expect to die with more than $2M of wealth and I think I should be able to pass it on to anyone of my choosing without taxes paid by the recipients. It does not matter whether or not they earned it or not. I did - by virtue of working a lifetime to earn it and pay taxes on it multiple times.
I'm not sure where you are getting your figure. According to a very rightwing source: "The Total Taxable Income for millionaires was $626,464,479,000 in 2009. So, if the Federal government taxed millionaires at a 100% tax rate, it would pay for 53.5% of the 2009 deficit."
I was assuming millionaires get taxed at 80 percent and everyone else still gets taxed at the same rate they are currently being taxed. If that were the case, we'd run a huge surplus.
That's a stupidly high rate though. How come when someone suggest raising taxes on millionaires by a few percentage points, we have to talk in hyperbolic extremes of more than doubling their current rate?
I'm not sure where you are getting your figure. According to a very rightwing source: "The Total Taxable Income for millionaires was $626,464,479,000 in 2009. So, if the Federal government taxed millionaires at a 100% tax rate, it would pay for 53.5% of the 2009 deficit."
I was assuming millionaires get taxed at 80 percent and everyone else still gets taxed at the same rate they are currently being taxed. If that were the case, we'd run a huge surplus.
That's a stupidly high rate though. How come when someone suggest raising taxes on millionaires by a few percentage points, we have to talk in hyperbolic extremes of more than doubling their current rate?
Do a little research. When you tax the uber wealthy at ridiculous rates, they go away. Try treading about NJ.
Do a little research. When you tax the uber wealthy at ridiculous rates, they go away. Try treading about NJ.
I agree with you, Roadking. You can't tax anyone, rich or otherwise, at that ridiculous rate. I seem to recall rich people running around before Bush though. I think we can safely go back to the pre Bush tax rates -- for everyone, not just the rich.
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