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No, it didn't, the distribution of wealth just intensified. More $, more taxes. The % of income paid as taxes by those people went down. As a matter of fact,

by jbooth 17y ago

No, it didn't, the distribution of wealth just intensified. More $, more taxes. The % of income paid as taxes by those people went down. As a matter of fact, people in the top tax brackets typically pay a lower % of their income in taxes than their secretaries. EDIT: Also, where does this persistent myth that "half of all people pay no federal income taxes" come from? They do pay federal income tax. When I had summer jobs I paid income tax beyond FICA. When I made small money right out of college I paid income tax beyond FICA. I'm guessing it's the same story for you, as well. Poor memory?

anamax 17y ago
> The % of income paid as taxes by those people went down. How about some actual data? Note that tax rates aren't the whole story. And, even if it was true, that doesn't tell us what fraction of the tax revenues that they're paying. Do you really think that it's good when most people don't have much, if any, skin in the game? (As CA is discovering, collecting the bulk of your revenue from a small number of people makes tax revenues very volatile.) > As a matter of fact, people in the top tax brackets typically pay a lower % of their income in taxes than their secretaries. Nope. They pay higher rates on their earned income and they pay higher rates on the investment income. You're "confusing" the two. And, their deductions are phased out. > Also, where does this persistent myth that "half of all people pay no federal income taxes" come from? The IRS. http://www.irs.gov/taxstats/indtaxstats/article/0,,id=133521,00.html http://www.irs.gov/taxstats/indtaxstats/article/0,,id=133521... The relevant data is formatted better in http://www.taxfoundation.org/news/show/250.html http://www.taxfoundation.org/news/show/250.html > When I made small money right out of college I paid income tax beyond FICA. You may have had it deducted fromyour paycheck, but unless you were someone's dependent, you could have gotten it refunded.
- jbooth 17y ago
  Capital gains is taxed at a lower rate than your first 50k of income. Because of the lack of FICA if nothing else. 15% is lower than most people are paying on their income. Same with the top tax brackets. Your 2nd million dollars will be taxed at around 35% if my memory is correct. If you're making 50k, you're paying more than 35% of your income in taxes. (fed + fica + medicare)

by jbooth 17y ago

anamax 17y ago

> The % of income paid as taxes by those people went down. How about some actual data? Note that tax rates aren't the whole story. And, even if it was true, that doesn't tell us what fraction of the tax revenues that they're paying. Do you really think that it's good when most people don't have much, if any, skin in the game? (As CA is discovering, collecting the bulk of your revenue from a small number of people makes tax revenues very volatile.) > As a matter of fact, people in the top tax brackets typically pay a lower % of their income in taxes than their secretaries. Nope. They pay higher rates on their earned income and they pay higher rates on the investment income. You're "confusing" the two. And, their deductions are phased out. > Also, where does this persistent myth that "half of all people pay no federal income taxes" come from? The IRS. http://www.irs.gov/taxstats/indtaxstats/article/0,,id=133521,00.html http://www.irs.gov/taxstats/indtaxstats/article/0,,id=133521... The relevant data is formatted better in http://www.taxfoundation.org/news/show/250.html http://www.taxfoundation.org/news/show/250.html > When I made small money right out of college I paid income tax beyond FICA. You may have had it deducted fromyour paycheck, but unless you were someone's dependent, you could have gotten it refunded.

jbooth 17y ago
Capital gains is taxed at a lower rate than your first 50k of income. Because of the lack of FICA if nothing else. 15% is lower than most people are paying on their income. Same with the top tax brackets. Your 2nd million dollars will be taxed at around 35% if my memory is correct. If you're making 50k, you're paying more than 35% of your income in taxes. (fed + fica + medicare)