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Mon Jan 7, 2013, 12:35 AM

 

"Most progressive tax rates since 1980" = BS

Graph of rates for highest & lowest brackets 1913-2009. The fiscal cliff deal raises the top bracket to 39.6%, i.e. what it was under clinton. It's clear from the graph that the most progressive tax eras were 1916-1925, & 1932-1985~87.

The gap between the top & bottom has narrowed considerably since 1985, & this deal changes that situation only marginally.





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Reply "Most progressive tax rates since 1980" = BS (Original post)
HiPointDem Jan 2013 OP
ProSense Jan 2013 #1
NoOneMan Jan 2013 #2
David__77 Jan 2013 #3
HiPointDem Jan 2013 #4
hfojvt Jan 2013 #5
HiPointDem Jan 2013 #6

Response to HiPointDem (Original post)

Mon Jan 7, 2013, 12:37 AM

1. LOL!

What?

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Response to HiPointDem (Original post)

Mon Jan 7, 2013, 12:41 AM

2. No

 

"Most progressive tax rates in history" makes me feel like Im winning.

That's more important when I can't afford my groceries in a country going bankrupt

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Response to HiPointDem (Original post)

Mon Jan 7, 2013, 12:49 AM

3. I'd like to see the effective tax rate by decile before drawing a conclusion.

Back in 1980, there were a lot looser tax sheltering means than today.

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Response to David__77 (Reply #3)

Mon Jan 7, 2013, 12:59 AM

4. feel free to find that data & post it.

 



The meaningful tax rate is the “effective” rate — the share of their income that people actually pay in taxes. The following chart shows the top marginal rate and the average effective rate on the top 1% of taxpayers since World War II.

The latter is from calculations by the Congressional Budget Office (here) and is only available beginning in 1979. (As of 2005, a four-person household in the top 1% had a pretax income of $600,000 or more.)

The effective rate is lower now than it was in the late 1970s and in the mid-1990s.

http://lanekenworthy.net/2008/01/14/taxes-at-the-top/

The following chart shows federal government tax revenues as a share of GDP by the effective tax rate on the top 1%. The data points represent each year for which data are available. Although the correlation is far from perfect, tax rates on the richest are positively associated with the portion of GDP collected in taxes. This is as we would expect. It suggests that steeper tax rates at the top are likely to bring in more revenue.



http://lanekenworthy.net/2008/01/14/taxes-at-the-top/

according to this source, this chart is based on cbo data. the links to cbo pages are dead, though.



http://www.rationalrevolution.net/articles/american_income_taxation.htm



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Response to David__77 (Reply #3)

Mon Jan 7, 2013, 01:16 AM

5. I only have stats going back to 1986

http://journals.democraticunderground.com/hfojvt/169

the average rate paid by the top 1% was much higher in 1986 than it was even in 1995.

There is no loophole from the 1970s which is as big a giveaway to the rich as Obama's reduction of the tax rate on dividends is.

Mitt Romney had $4.9 million in dividend income in 2010. Thanks to Obama's great deal, Romney will only pay 20% tax rate on those dividends instead of 39.6%. A savings of $960,000. Not bad money for 365 days of not working.

The deal gives the top 1% about $600 billion in tax cuts over the next ten years. This is being marketed to gullible liberals as a $600 billion tax increase, because if all the Bush tax cuts had been extended, the top 1% would have gotten a $1.2 trillion tax cut. Is it really a tax increase if your $1.2 trillion tax cut gets reduced to just $600 billion?

I sure would like to get that kind of tax increase. That works out to a tax cut of $164 million per day over the next ten years. Please send the first day's payment to me, at PO Box 2, Leavenworth, Ks, 66048.

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Response to hfojvt (Reply #5)

Mon Jan 7, 2013, 01:21 AM

6. We could also add the laws that allow them to offshore trillions in tax havens without paying

 

a penny.

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