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Having just filed your income tax returns you might be interested: recently The Wall Street Journal had a series recently purporting to prove that the wealthy pay MORE than their share of taxes.

There were a number of things wrong with their argument:

they looked at totals not income shares, not at income not taxed, but the most flawed part of their argument was that they neglected to mention taxes other than the income tax. Now, the income tax is mildly progressive on its face, less so in effect, but most Americans pay as much or more on other taxes: sales, excise, property, school, and payroll, to name a few.

When you add those in, the share of taxes paid by the highest income receivers is roughly proportional to even the lowest income receivers.

But the wealthy get a lot more for their money, don't they? Like high profits from defense industries contracting for our nasty little war. What do the poor get? Opportunities to be shot at/bombed in Iraq.

Which is why the Dems ought to repeal those high-end tax cuts the Repubs passed in the last 6 years.

Originally posted to douglassmyth on Wed Apr 18, 2007 at 09:16 AM PDT.

Poll

The Dems should

33%23 votes
20%14 votes
4%3 votes
41%28 votes

| 68 votes | Vote | Results

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Comment Preferences

  •  Other... (1+ / 0-)
    Recommended by:
    JohnGor0

    Make the AMT for incomes over $250K and index it for inflation offset could be partially higher taxes on top bracket

  •  Options one and two are essentially the same (0+ / 0-)

    whole system is regressive

    needs to be blown up and start over from scratch

    of course that is politically impossible

    sigh

    "We will now proceed to construct the socialist order."

    by 7November on Wed Apr 18, 2007 at 09:24:35 AM PDT

  •  Income tax etc (0+ / 0-)

    The real question is what is the purpose4 of taxation?
    If taxation is meant to punish people or reward them for having money from various sources, then the current tax system works fine.

    If the purpose is to raise money for the federal government to spend on various projects, then studies should be done on where the maximum return is. Taxation is a mini-max problem.

    Reagan showed back in the 80's that reducing the tax rate can cause an increase in revenues. Revenues increased on a per capita basis when the rates were cut.

    But it makes sense that this cannot be true for all tax rates. A 1% tax rate shouldn't give a greater revenue stream than a 2% tax rate because both are minimal.

    If taxation is meant to raise revenue for the feds, then we should study where the maximum return is and set taxes at that rate. This would give congress a very good idea as to how much it had to spend.

    I find it the height of hilarity that a board that was congratulating itself on its open-mindedness is so rude to those it disagrees with.

    by elvish1 on Wed Apr 18, 2007 at 09:26:46 AM PDT

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