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They actually get hit less hard because we don't have enough tax brackets and the tax rate at the upper brackets is way too low: http://i.imgur.com/gogxtbv.jpg
by minikites 13y ago
They actually get hit less hard because we don't have enough tax brackets and the tax rate at the upper brackets is way too low: http://i.imgur.com/gogxtbv.jpg http://i.imgur.com/gogxtbv.jpg
- jlarocco 13y agoThe article isn't talking about the ultra-rich making millions a year - it's talking about people making >$100k. I'd guess that most people making >$100k per year are making less than $353k, where the taxes start decreasing. So they would, in fact be getting hit hardest by taxes, according to your graph.
- encoderer 13y agoFor people earning over $350k yes you're right. But no sir, even by the link you posted, those in the $100-350k range are certainly hit the hardest. First, based just on the data, you see that at these income levels, many many credits and deductions are fully phased-out. AMT becomes a real issue. Etc. But in an anecdotal sense, my experience of people (like myself and my wife, 2 professionals living in a high CoL area) earning in this $100-350k range, this is often the product of 2 people with "normal" jobs. So most of my income is earned income. But those out in the stratosphere above $350k earn more and more of their income from capital gains and receive favorable tax treatments.
- hkmurakami 13y agoI think you're conflating ordinary income tax rates with long term capital gains tax rate, dividend tax rate, tax free muni bond yields, etc that the 7 figure wealthy and above use.