4 ms·
there's a point past which taxation is essentially regressive as a result Perhaps, but the US is not past that point. Every level of income pays a higher rate
by harryh 8y ago
there's a point past which taxation is essentially regressive as a result
Perhaps, but the US is not past that point. Every level of income pays a higher rate of taxes than the level below it according to IRS reports.
Separately, none of the issues I listed are hypothetical.
- int_19h 8y ago> Every level of income pays a higher rate of taxes than the level below it according to IRS reports Does their definition of "income" include capital gains for the purpose of those reports? I don't see how this could possibly be true if it does, given that capital gains constitute the largest part of overall income past a certain point on the scale.
- harryh 8y agoDoes their definition of "income" include capital gains for the purpose of those reports? Yes https://taxfoundation.org/summary-latest-federal-income-tax-data-2018-update/ https://taxfoundation.org/summary-latest-federal-income-tax-...
- int_19h 8y agoIt doesn't show up in their data, because they cut off at 0.1% - the hump is slightly higher than that. This shows where it was as of 2014. https://www.taxpolicycenter.org/taxvox/how-capital-gains-affected-average-income-tax-rates-2001-2014 https://www.taxpolicycenter.org/taxvox/how-capital-gains-aff... I'm not sure where it is today, exactly. But it's easy to see that it's always going to be there, simply by virtue of increasing proportion of capital gains at higher income levels.