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View Diary: On day of Mitt Romney's tax release, poll finds widespread support for raising taxes on the 1% (59 comments)

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  •  Mitt Romney is not the 1%. (18+ / 0-)

    The top 1% is household income of about $344,000 and up.   That's most often working professional couples and, yes, small business owners.

    And they pay taxes on earned income at top marginal rates of 33% and 35% (above about $388,000 in combined income).  

    Mitt Romney is the top .001%, and he pays taxes on capital gains at the capital gains rate of 15%.  

    It helps to define "the rich" that you want to raise taxes on.  If you want to raise taxes on the Mitt Romneys of the world, raising top marginal on earned income over $250,000 (household  2 income), as the President proposes, does nothing. That only burdens people who actually do work for a living -- college educated working couples, small business owners, etc.).  If you want to raise taxes on the Mitt Romney's of the world, you need to raise capital gains taxes (not taxes on earned income) and raise those capital gains rates on incomes above a certain level, say, $1 million.

    •  Capital gains tax rate should be higher than (7+ / 0-)

      that on earnings from real work

      "I'm sculpting now. Landscapes mostly." ~ Yogi Bear

      by eXtina on Tue Jan 24, 2012 at 11:13:58 AM PST

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    •  the 1% also needs its rates raised (5+ / 0-)

      back to the Clinton rates. Just not as much as the Romney 0.1% need their rates raise (cap gains needs to be taxed as same rate as earned income which would bring Romney himself up to 35%.)

      We need to pay for our government. That includes the $300k a year crowd as well as the 0.01%. And to make the budget balance, a smaller increase on the $100k a year crowd as well.

      •  Everyone needs to go back to Clinton rates (1+ / 0-)
        Recommended by:

        Let's see if the Dems have the political will to let the Bush tax cuts expire this year like they should have in 2010. All they need to do is do nothing, the cuts expire automatically.

        "let's talk about that"

        by VClib on Tue Jan 24, 2012 at 11:35:20 PM PST

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    •  Earnings of 344,000 is still considered a helluva (2+ / 0-)
      Recommended by:
      pstoller78, Uncle Moji

      lot of money and if that is an annual salary, the person or household is considered rich by most people.

      Granted, MIttens is very wealthy and people making this 300k and above are merely rich, I guess.

      •  That's not the only point. (3+ / 0-)
        Recommended by:
        kingfishstew, tofumagoo, VClib

        those who make $344,000 (say, a middle-aged working professional couple each making $175,000 - $200,000) are taxed at the rates for earned income, which are presently (33% up to about $379,000, 35% above that).  

        That 15% is only on capital gains income.  Only the uber uber rich (Romney, Warren Buffet) are taxed at those low rates, because they can get most income through capital gains.  The "merely" 1% are taxed at the much higher earned income rates, because the "merely" 1% are working to earn their income.  

    •  But...but...but.... (0+ / 0-)

      that will create uncertainty and the job creators won't invest in the Caym- I mean, America!  Coffeetalk, why do you hate America?

      Ezra Klein is my "freebie"

      by Skylarking on Tue Jan 24, 2012 at 11:32:01 AM PST

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    •  The solution is... (3+ / 0-)
      Recommended by:
      DMiller, Uncle Moji, tofumagoo raise the tax rates on capital gains and dividend income.  Just letting the Bush tax cuts on those two items expire would be a significant tax increase on the top 0.1%.  

      That would result in dividends being treated as normal income, and capital gains being taxed at 20% maximum.  I think 20% is still too low, but it's a start.  I'd really prefer to see it eventually return to the rate it was at between 1986 and 1997, when capital gains were taxed at 28%.  Maybe even a little higher...

      Political Compass: -6.75, -3.08

      by TexasTom on Tue Jan 24, 2012 at 11:40:27 AM PST

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    •  A reasonable burden (0+ / 0-)

      I have no problem with doing both, raising the top marginal rate on earned income OVER $250K (the amount earned UNDER $250K remaining unchanged) and increasing the capital gains rate on unearned income over, let's say, your suggested $1M.

      The rest of us, the 99%, are burdened by working just as hard, for one fifth of the amount the top 1% make, and we pay a larger percentage of our incomes for staples, like milk, bread, gas, heating oil, clothes from WalMart and Sears.  

      I get that very few of the rich (top 1% is rich, however uncomfortable it may make one) want to pay more in taxes, but you can actually afford to pay more, and still pay a smaller percentage of your income for your gas, milk, bread, and medicines ( those necessary burdens of living) than do the rest of us.    

      "Out of Many, One." This is the great promise of our nation -9.75 -6.87

      by Uncle Moji on Tue Jan 24, 2012 at 12:19:06 PM PST

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