Obama's first failed appointment

CBO has interesting data on the growing income gap in a report this month.

Some figures from one chart on the average after tax income over the last 25+ years (pdf)

the lowest fifth increased from $14,900 to $16,500 from 1979 to 1986 - 11% increase
the second fifth increased from $30,100 to 35,400 from '79 to '86 - 18% increase
the top fifth increased from $98,900 to $184,400 from '79 to '86 - 87% increase
the top 1% increased from $337,100 to $1,200,300 - 256% increase

Pretty much explains why I support a progressive income tax....and I still aspire to the top tier...even if it means paying a higher percentage marginal tax rate. (not that I expect to make that top 1%)

More: http://www.cbo.gov/publications/coll...stribution.cfm

[TheMercenary]

Originally Posted by Redux

CBO has interesting data on the growing income gap in a report this month.

Some figures from one chart on the average after tax income over the last 25+ years (pdf)

the lowest fifth increased from $14,900 to $16,500 from 1979 to 1986 - 11% increase
the second fifth increased from $30,100 to 35,400 from '79 to '86 - 18% increase
the top fifth increased from $98,900 to $184,400 from '79 to '86 - 87% increase
the top 1% increased from $337,100 to $1,200,300 - 256% increase

Pretty much explains why I support a progressive income tax....and I still aspire to the top tier...even if it means paying a higher percentage marginal tax rate. (not that I expect to make that top 1%)

More: http://www.cbo.gov/publications/coll...stribution.cfm

From your chart:

Comprehensive household income equals pretax cash income plus income from other sources. Pretax cash income is the sum of
wages, salaries, self-employment income, rents, taxable and nontaxable interest, dividends, realized capital gains, cash transfer
payments, and retirement benefits plus taxes paid by businesses (corporate income taxes and the employer's share of Social
Security, Medicare, and federal unemployment insurance payroll taxes) and employee contributions to 401(k) retirement plans. Other
sources of income include all in-kind benefits (Medicare, Medicaid, employer-paid health insurance premiums, food stamps, school
lunches and breakfasts, housing assistance, and energy assistance).

That is a lot of different souces of "income" which most people would not include as income. So it sort of scews the results as being less than accurate IMHO.

[sugarpop]

Originally Posted by TheMercenary

From your chart:



That is a lot of different souces of "income" which most people would not include as income. So it sort of scews the results as being less than accurate IMHO.

Yes, well, the rich would love it if their capital gains did not count as income, even though it most definitely is. I would prefer it if capital gains were taxed more and actual work-related income was taxed much less.

[TheMercenary]

Originally Posted by sugarpop

Yes, well, the rich would love it if their capital gains did not count as income, even though it most definitely is. I would prefer it if capital gains were taxed more and actual work-related income was taxed much less.

I would agree that capital gains are income.

[piercehawkeye45]

Originally Posted by Redux

Pretty much explains why I support a progressive income tax....and I still aspire to the top tier...even if it means paying a higher percentage marginal tax rate. (not that I expect to make that top 1%)

Eh, the more I think about it the more I agree with Lookout's tax idea. I would change it to a small progressive tax then flat rate but the main point is to have a large sales tax. I don't know if he went into this, but I would make the sales tax "progressive" as well. Low sales tax for necessities (food, clothing, etc), higher for entertainment, and extremely high for luxury items.

[sugarpop]

Originally Posted by piercehawkeye45

Eh, the more I think about it the more I agree with Lookout's tax idea. I would change it to a small progressive tax then flat rate but the main point is to have a large sales tax. I don't know if he went into this, but I would make the sales tax "progressive" as well. Low sales tax for necessities (food, clothing, etc), higher for entertainment, and extremely high for luxury items.

I have said that wouldn't be a bad idea. The problem with the way it has been presented, is it would hit the lower income and middle class too much, and it would be much better for wealthier people. It will never ahppen though, because the people at the top would never stand for a high luxury tax on their playthings.

Honestly, I don't see what is so bad about a progressive income tax, without all the loopholes.

[TheMercenary]

Originally Posted by sugarpop

Honestly, I don't see what is so bad about a progressive income tax, without all the loopholes.

because the people who make it don't want to give it to people who don't.

Originally Posted by TheMercenary

because the people who make it don't want to give it to people who don't.

I havent seen any data anywhere to support that.

By that I mean, the top taxpayers saying they pay too much.

The people making that claim are not the rich in many (most?) cases, but persons who are ideologically opposed to a progressive tax.

[TheMercenary]

Originally Posted by Redux

I havent seen any data anywhere to support that.

By that I mean, the top taxpayers saying they pay too much.

The people making that claim are not the rich in many (most?) cases, but persons who are ideologically opposed to a progressive tax.

We are having a circular discussion here, again.

Why would you need to have some data saying such a thing by top taxpayers? Such a person would most likely not say such a thing. Well maybe Donald Trump. The problem is that "rich" still has not been defined. And the proposals to raise taxes on the "rich" is not a tax on the "rich" at all but a tax on upper income earners. And it is among those upper income earners that pay the majority of all federal and state income tax among earners. And that is completely an unfair tax. I am not going to change your mind and you have been utterly unable to change mine as your facts are no less biased than mine.