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View Diary: How are the rich getting richer? The more they make, the lower income tax rates they pay. Face palm. (141 comments)

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  •  Actually, not that complicated. (1+ / 0-)
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    Ian Reifowitz

    At the high end, it's mostly capital gains rather than earned income. There's a limit to how much work, even wildly overcompensated work like playing basketball, that one person can do (of course very few people can play basketball that well), while the potential for unearned (dividend/cap gains) income is limited only by how wealthy you are. Because the powerful have enormous influence in government they are able to keep capital gains tax rates far lower than earned income tax rates.

    "All governments lie, but disaster lies in wait for countries whose officials smoke the same hashish they give out." --I.F. Stone

    by Alice in Florida on Sat Nov 02, 2013 at 10:54:24 AM PDT

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