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Also wish schools would go back to teaching some of the basics; such as how marginal tax rates work.
You mean they had other "tax deductions" to lower the marginal rate. You mean the same concept when republicans said the current top marginal rate was above 40 % and needed to be lowered? Is that what you are saying?
You are right. People need to understand basics.
Oh. And your own link shows a graph that taxes decreased from a high in the 1950s.
Who cares, she's like one vote. Besides, she's an idiot. Good for laughs though.
Manhattan would be 84%. She's nuts if she thinks a $12 million earner will pay an 84% tax rate on that last $2 million. They'll stop working at the $10 million mark, instead. It'll reduce productivity, etc., and crash the economy.
On another note, the idiot's degree from Boston University. She minored in Economics, apparently something she knows nothing about. /SMH
Hauser's Law (Observation) folks. Learn it, live it, love it. And it goes like this: no matter what the tax rates are, the federal revenue averages ~17% of the GDP. Check the historical tables from omb.gov if you doubt it.
From 1945 to 1980, the top marginal rate was some number >=70%, and government revenue as percentage of GDP in that period averaged 17.1%.
Here's why:
The top marginal rate is structured to be only on upper incomes because "punishing the rich" is good for buying votes.
The rate is applied to earned/declared income, and that is an easy number to change regarding total compensation.
The "rich" end up changing their income and tax behavior to pay less in tax.
Congress, being primarily rich people themselves, set up all manner of ways to do this. Angry plunderers, moochers and looters refer to those laws as "loopholes" but they are simply tax laws that anyone possessed of the ability to read and comprehend English is capable of knowing.
And the end result is the amount of the GDP that gets heisted for government use ends up always being 17%, +/- 2%.
Again, check omb.gov if you doubt me. Ocasio-Cortez is just another dumbass who thinks nobody will change their behavior to hide from the tax man, when history is quite clear and unanimous that indeed, people will and do change their behavior every single time the tax man cometh. Hard to argue with 70 years of rock solid, consistent, easily verifiable data.
This means that in NY and CA, when you include state and local taxes, some people will be paying over 80% in taxes. Thats just absurd, regardless of how much money anyone makes. The federal government does not have the right to take 70% of anyone's income, taking ~30% is questionable, especially considering how wasteful they are with it.
Those New Yorkers and Californians should pay over 80% of their income to pay for the illegals that are coming in and committing crimes and then they're protecting. I say 90% for Californians...you go Socialist Barbie.
I think the USA needs to increase the upper bracket, not sure if 70% is the solution. At least right now, perhaps do this in gradual steps and study the repercussions. The first gradual step might be taking the upper bracket to 45%.
But another way the USA can raise taxes is a federal VAT on all luxury goods (eg not essential foods or medicines).
So, at this point, what percentage of Americans pay little-to-no income tax?
45% of US 1040 filers pay zero federal income tax whatsoever, and 27% of 1040 filers pay no federal income tax AND no payroll tax since the refundable tax credits (different from deductions, and most apply to the low-income and middle class with child dependents) for which they're eligible offset the payroll tax. A portion of that 27% actually gets money FROM the government just for filing, again, due to refundable tax credits. Top earners aren't eligible for those credits.
Latest published tax data, for 2015. Source: left-wing think tank, Tax Policy Center...
A surprisingly large percentage (about 27%) of the income tax filing population isn't expected to contribute at all in regards to federal income and payroll taxes.
Federal Income Tax Units: 171.3 million (Excludes those who are dependents of other tax units) Federal Income Tax Payers: 93.8 million (Tax filers with a total federal individual income tax obligation of over $5 for the year, already withheld or not)
A tax unit is an individual tax return filer, or a married couple who file a tax return jointly, along with the inclusion of all (if any) dependents of that individual or married couple.
Tax Units with Zero or Negative Individual Income Tax:
77.5 million. 45.3% of all tax units.
Tax Units with Zero or Negative Sum of Income and Payroll Taxes:
A large percentage of seniors don't have to file 1040s because they earn too little, so they're an insignificant portion of that 27%.
Quote:
When determining whether you need to file a return, you don't include tax-exempt income. In 2018 for example, if you are under age 65 and single, you must file a tax return if you earn $12,000 or more, which is the 2018 standard deduction for a single taxpayer
If you are at least 65 years old and receive Social Security income during the year, you are subject to the same filing requirements as any other taxpayer. However, you can generally receive more income during the year than other taxpayers before having to file a tax return.
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