Let the good times roll for the upper-class!

[Flubber]

Originally posted by Arrian
Depending, of course, on how you define "very highly progressive." And, IMO, you can't just look at one tax (even the income tax, which is the biggie)... one must look at the total picture (hence Drake's reference to the payroll tax). The income tax is progressive, yes. Perhaps even "very highly" so. Is the tax system overall "very highly" progressive, though?

-Arrian

I am not familiar with US payroll taxes. In Canada everyone pays into EI and social security but your contribution tops out at around 40K-- I always thought that was "fair" since benefits are capped based on the maximum contribution amount

and I know in the US income tax system it could be even more sharply progressive. I do believe though that you start hitting disincentives for high earners to actually exert themselves to earn more. For instance if my marginal rate was at 60% I doubt I'd feel much need to bust my ass.

My biggest issue with the tax brackets in Canada is that you don't have to be extremely wealthy to be getting into the higher brackets. Many very middle class working folks hit the top brackets. For years bracket creep caused this as the brackets were not indexed to inflation. They are indexed now but I don't recall them boostong the brackets to make up for the past inflation

[Arrian]

60% marginal tax rate? Where does that come from?

-Arrian

[MrFun]

He used 60 percent as an exaggerated, hypothetical example.

[MrFun]

Originally posted by Zkribbler
For awhile there, I thought our millionaires might have to suffer. Thank GOP that they'll be getting more money.

A rising Republican tide raises all yachts.

Yep; because it would be unAmerican to do the middle class and lower class any favors.

[Japher]

trickle down man!

[Flubber]

Originally posted by Arrian
60% marginal tax rate? Where does that come from?

-Arrian

It doesn't-- It was an example of a high marginal rate which I think would serve as a disincentive. Even with marginal rates in the mid-40s I know people that saw taking extra shifts as "hardly worth it" if they had to commute, or pay daycare or whatever

[Drake Tungsten]

He used 60 percent as an exaggerated, hypothetical example.

The US had a 70% marginal tax rate for the top tax bracket before the Reagan tax cuts...

[Flubber]

Originally posted by MrFun
He used 60 percent as an exaggerated, hypothetical example.

exactly

[Flubber]

Originally posted by Drake Tungsten

He used 60 percent as an exaggerated, hypothetical example.

The US had a 70% marginal tax rate for the top tax bracket before the Reagan tax cuts...

Ouch-- I would personally see that as "too progressive"-- I'm sure someone can find some numbers that would state whether or not it would raise more revenue or cause a chill effect but for me it doesn't meet the PERSONAL"is it worth it" test.

IF I had a 70% marginal rate, there is no way in heck I would work to earn additional money . If we needed additional cash, it would make much more sense for my wife to work more

[MrFun]

Originally posted by Drake Tungsten

He used 60 percent as an exaggerated, hypothetical example.

The US had a 70% marginal tax rate for the top tax bracket before the Reagan tax cuts...

oh

[Ted Striker]

ah

[Japher]

eh

[MrFun]

superb articulation guys

[Arrian]

Originally posted by Drake Tungsten

He used 60 percent as an exaggerated, hypothetical example.

The US had a 70% marginal tax rate for the top tax bracket before the Reagan tax cuts...

Yes, just mentioning the words "Jimmy Carter" to my parents unleashes a diatribe about "beware the rich liberal - he's made his, and he doesn't want you to make yours!" because of that 70% bracket.

It was too high. But people are still whining about 33%.

-Arrian

[Flubber]

Originally posted by Arrian


Yes, just mentioning the words "Jimmy Carter" to my parents unleashes a diatribe about "beware the rich liberal - he's made his, and he doesn't want you to make yours!" because of that 70% bracket.

It was too high. But people are still whining about 33%.

-Arrian

And if it were 15% some would whine about that-- The whining will never disappear