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User voted No.
2 votes
Oct 13, 2015

I am in favor of making the tax system more progressive so the rich pay more of their fair share, raising the capital gains tax, and closing tax loopholes for the rich and corporations as a way to reduce the deficit, but that alone will not solve the problem of socioeconomic inequality. Socioeconomic inequality is a much broader issue, involving education, job opportunity, latent racism, the criminal justice system, and much more.

Taking the rich does not guarantee that these issues will be addressed. It will increase the revenue the government needs to reduce the deficit, thereby allowing the possibility that these issues could be addressed, but the government must be forced to use the funds in that way. That can only be done by electing a Congress that will make it happen.

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0
User voted No.
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0 votes,
Oct 29, 2015

The top 10% are already paying close to 70% of the federal income tax collected, how much more should they pay? The problem isn't the rich, the problem is that the government has for years overspent we now spend over $220 billion per year on the national debt's interest. We owe about $ 66.000 per citizen without that debt we could afford to solve most of our problems, but until we get a balanced budget amendment the government will continue to over spend. Fix the debt and over spending problem and most of the others will go away.

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User voted No.
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0 votes,
Oct 29, 2015

I know the stats. heritage.org/federalbudget/top10-percent-income-earners

But considering the top 10% receive over 70% of the total income, own about 75% of the wealth, and own almost 85% of the financial assets, I think you just proved my point. Some groups don't give you those stats.

CBO Distribution of Household Income and Federal Income Tax

Scientific American - Income Inequality It's Far Worse Than You Think

I am in the top 5% and I think the top 10% should pay more, and proportionately among those in the top 10%, since the disparity is even greater there. Look at the following.

For 2015, a single person making $35,000 is in the bottom 40% income bracket and taxed at 15%.
They pay $5,250 and have $29,750 left.

A single person making $70,000 is in the top 40% income bracket and taxed at 28%.
They pay $17,500 and have $52,500 left.

A single person making $100,000 is in the top 20% income bracket and taxed at 25%.
They pay $25,000 and have $75,000 left.

A single person making $145,000 is in the top 10% income bracket and taxed at 25%.
They pay $36,250 and have $108,750 left.

A single person making $200,000 is in the top 5% income bracket and taxed at 33%.
They pay $66,000 and have $134,000 left.

A single person making $2,000,000 is in the top 1% income bracket and taxed at 39.6%.
They pay $792,000 and have $1,208,000 left.

A single person making $20,000,000 is way up there in the top .5% or less and they also re taxed at 39.6%. They pay $7,920,000 in taxes and have $12,208,000 left.

In 2015, the difference in tax rate between someone making $200,000 and $2,000,000 is 6.6%. In 1958, using todays dollars for income, the difference would have been about 40%.

I am not saying we should return to those rates, but certainly we can find a medium. More progressive tax rates did not hurt the economy in the 1950s and 60s, and it won't hurt it today. It didn't stifle growth then, it won't now. I agree that the Federal budget can be reduced, but not enough to eliminate the deficit.

The numbers are clear. We need more revenue.

2015 tax rates:
efile.com/tax-rate/federal-income-tax-rates/
Income percentile:
nytimes.com/interactive/2012/01/15/business/one-percent-map.html?_r=0
money.cnn.com/calculator/pf/income-rank/

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User voted No.
0 votes,
Oct 29, 2015

But in the 1950's and 60's you had a ton of loopholes so almost nobody paid the top rates and if they did it was on a very small percentage of their income. Top rate back then was 90% nobody paid that, they could write off a lot of their income. So trying to say the rates were much higher back then so we should be higher now, is fair, we don't have the loophole they had back then. Do we need tax reform, yes, but unless there is a balanced budget amendment congress will keep on spending until we look like Greece. What a person have leftover after taxes means nothing really I worked hard and I gave up whatever percentage the government takes what's leftover is mine to spend.

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User voted No.
0 votes,
Oct 29, 2015

You are correct in that there were more deductions, but that does not negate the fact that the median rate of taxes paid was higher or the numbers concerning what different income brackets pay in 2015. I did not mention that corporate taxes made up a greater share of revenue, even factoring in employer matching Social Security payments.

We may disagree on whether we need more revenue, but I think we both agree that business as usual cannot continue.

A balanced budget amendment could help or hurt. Without a long-term, bipartisan plan on what to cut, across-the-board cuts would be necessary. Cutting into existing services or defense spending without knowing the effect on the economy, our national defense, and our most needy citizens could be more disastrous than the current deficit.

Even President Clinton and Speaker Gingrich were able to pull both their parties to the table and win concessions. President Clinton campaigned on being pro-business and cutting welfare. Speaker Gingrich helped hold him to his promise on welfare, and welfare spending would have been much larger today without the bi-partisan legislation they got both their parties to accept. Republicans gave up some defense spending and allowed a small tax increase averaging about 3-6%, and Democrats accepted cuts in social spending and welfare reform. By the end of both their terms the deficit was virtually eliminated. Even though there is some debate about whether the budget was truly balanced, the deficit was a hell of a lot smaller than it was when Preident Bush left office and than it is today.

We need to decide if the government is going to provide the basic services to its citizens that all the other major industrialized countries provide, and to what level. We need to address rising healthcare costs that have been rising uncontrollably for three decades, and neither the ACA nor the alternative Republican plans do that effectively. I am for a strong foreign policy involving realistic, deterrent military capability coupled with strategic military and trade agreements that make the global market more stable and the world a safer place. Nevertheless, we need to prioritize military spending and look at the number, purpose, and location of our military bases abroad and at home. We need to maximize the benefit citizens and taxpayers receive from spending on social programs. I am sure you and I could name plenty of areas to look at spending, even if we don't agree. But Congress has to start somewhere and the unwillingness of both sides to come to the table and negotiate in good faith is preventing real solutions in favor of partisan slogans, both sides telling their voter base what they want to hear.

I never thought I would long for the Clinton/Gingrich years, but right now they are looking pretty good. Speaker Gingrich may have shut down the government, but then both sides compromised and they got something done.

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User voted No.
0 votes,
Oct 30, 2015

When you look at the median rate of taxes paid though time it's almost same over the last 60 years. But what's funny is there was a plan to make taxes more fair and so easy to fill out that a 3 x 5 card would contain the entire form and the math. A family of 4 making 20,000 would pay $200 in income tax, everyone should pay something, if that same family made 50,000 they would pay $200 on the first 20,000 and a higher (at the time it was15%) on the 30,000, and anything over that was taxed at 30%. There would be no deductions, simple. Now you could play with the percentages but it would be "fair", everyone would pay something those who could afford it would pay more, while still keeping much of what they made. But unless you have a balanced budget, the government will keep overspending and giving out "free" stuff. But at some point and time the credit card bill will come due, just like it did in Greece.

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