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DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » Raising tax rate on the r... » Reply #11

Response to BainsBane (Reply #8)

Mon Dec 10, 2012, 04:23 AM

11. elimination of deductions does not raise near enough in the long term

Because the income at the top keeps growing.

In 1995, the average income of the FAB 400 (the top 400 incomes) was $50.8 million by 2007 it had grown to a whopping $344.8 million. Higher rates would impact that extra $290 million, but eliminating deductions would not. Because all deductions are effectively utilized at $50 million, so there are no more to take to shelter that $290 million.

Just figuring $290 million times 2.6% times 400 is a tax cut of $3 billion per year - and that's just from the top 400, to say nothing of the other multi-millionaires.

It also amounts to an average tax cut of $7.54 million per plutocrat.

And then Republicans will say things like "The country is broke" or "we cannot afford this" or "we cannot afford that".

But we CAN afford $7.5 million tax cuts for each of the 400 richest people in America?

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