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Reply #25


Response to grahamhgreen (Reply #22)

Tue Dec 18, 2012, 11:30 PM

25. Simple if we don't live in the real world, or have to do real math

"According to the President" the deficit would already be cut in half, so while we can support his goal of a fairer tax system, we really should question his math a bit.

How about according to IRS data of actual tax returns? The most recent tax year with detailed information available was 2009.
Source: http://www.irs.gov/uac/SOI-Tax-Stats---Individual-Statistical-Tables-by-Size-of-Adjusted-Gross-Income

The IRS data does not break out returns above $250K, so let's take returns with taxable income above $200K.

> Number of returns in that category in 2009: 723,191
> Total taxable income from those returns: $903.1 billion
> The portion from returns in excess of $250K: $722.3 billion
> Of that, the portion not from capital gains: about $500 billion

So you are increasing the tax rate on $500 billion in income. Today the rate is 33% on taxable income over $178,650 to $388,350, and 35% on taxable income over $388,350. Let's just say on average we collected 34% on all of those dollars today.

That means we already collected $170 billion on that income today. Now raise the rate on those dollars to 39%, and we would have collected $195 billion in taxes, for a net gain from that tax increase of $25 billion annually. At a 39% tax rate on incomes above $200K you'll get your $700 billion in 28 years.

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democrattotheend Dec 2012 OP
PoliticAverse Dec 2012 #1
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freshwest Dec 2012 #2
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mostlyconfused Dec 2012 #12
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Redfairen Dec 2012 #19
grahamhgreen Dec 2012 #20
mostlyconfused Dec 2012 #21
grahamhgreen Dec 2012 #22
democrattotheend Dec 2012 #23
grahamhgreen Dec 2012 #24
LineLineLineLineReply Simple if we don't live in the real world, or have to do real math
mostlyconfused Dec 2012 #25
mostlyconfused Dec 2012 #27
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grahamhgreen Dec 2012 #30
mostlyconfused Dec 2012 #31
grahamhgreen Dec 2012 #32
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