Contrary to popular belief we live in a time of unprecedented wealth and prosperity. Let's stop pretending our country need run huge deficits to pay for things like quality eduction, universal access to healthcare, public transportation, social security etc. The top 400 earners in the United states paid just 16.6% of their income in taxes. They earned $138 billion total and probably a lot more when you consider all the income they are allowed to deduct. The Obama picked cat-food commission is but another distraction and attempt to lower taxes for top income earners and cut social security costs.
Progressive taxation is simple: the more money you make the more you're going to pay in taxes for. Some get all riled up at the thought of graduated income taxes for top earners but progressive taxation encourages and supports private enterprises to thrive and let's stop pretending you can't have progressive taxation and prosperous times. Taxation isn't a punishment: if you're living in the United States and in the top tax bracket life is pretty good and you can afford to pay taxes and believe it or not your government has played apart in your ability to earn that much money. The good times are not going to end just because you're paying 35% of your income above let's say $1,000,000,000 to federal taxation a year. If your times aren't all that good it isn't because you're paying more in taxes. I suggest simplify and make tax codes more progressive like so:
Income level | Payroll and
federal taxes | State, local,
and other taxes |
Bottom 20% | 5% | 2.5% |
20-40% | 10% | 5% |
40-60% | 15% | 7.5% |
60-80% | 20% | 10% |
80-99% | 25% | 12.5% |
Top 1% | 35% | 15% |
The top 400 tax earner's average income in 2007 was $345 million. Even exempting the first $1 million of yearly income from a federal and payroll (medicare which all the sudden Republicans care about, Social security and Federal income tax) taxes from the tax rate of 36% would be great accomplishment for any Congress and we wouldn't need to run huge deficits to pay for the government. The budget deficit doesn't have to exist except in times to of economic downturn and unemployment start collecting a tax rate of 36% Obama and I'll gladly to turn out and vote for you and any congressperson in support of it despite your sanctimonious insults.
I'd say 35% for federal and payroll taxes would be a great place to start and 15% in local, state and other taxes. Too bad Republicans will fight it overstep of the way forcing us to choose between deficit-ceilings and unemployment extensions they paid. Never mind no mind under a Republican president and led congress and in just a month they'll control the House. You want to turn out progressive votes in 2012 President Obama and Congress? Make the tax code more progressive and simplify it. If Republican governance and tax cuts were are so good for the economy why did it all go to hell in 2007 and 2008? I'll tell you part of the reason: Republicans ran our government broke and always do so the rich can horde ever more and more money. Their idol Reagan quadrupled the deficit and our last Republican vice-president care about them after all it's left to the general public to pay for their never ending schemes to send the United States to war and their ability to profit from it.