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View Diary: We have a Congress problem and a revenue problem, not a deficit problem (28 comments)

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  •  Actually, I clicked on your link and did (0+ / 0-)

    the math.  The adjusted gross income of those earning $200,000 or more in 2008 was $2,447,144,675, of which was paid $526,618,011,000 in taxes at an effective rate  of 21.9%.  

    If the effective rate was increased to 40% you could add roughly $443 billion in new revenue.

    Currently, those earning $200,000 and above pay social security taxes on roughly 20% of their income, or in 2008, on $435 billion.  If the ceiling were lifted and all income taxed at 12.4%, another $248 billion in revenue could be generated.  Now we're up to $691 billion.

    Stop spending the $118 billion requested for the Iraq and Afghanistan wars, and reduce DOD spending by 20%, or $110 billion, and you've topped $919 billion in combined savings and revenues.

    Lob off $20 billion from the $55 billion in reported spending for intelligence services, and another $20 billion from the $57 billion requested for the Department of Homeland Security and you're pretty damned close to $1 trillion.

    "A free society that will not help the many who are poor, cannot save the few who are rich." JFK, January, 1961

    by rontun on Tue Jul 05, 2011 at 04:57:20 PM PDT

    [ Parent ]

    •  You're looking at (0+ / 0-)

      ALL of the income of people making 200k+, not just the part that's actually over 200k.

      In your scenario, you'd have these folks paying 40% of their income in federal tax, from the very first dollar.

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