Here's an idea - instead of cutting taxes, why not move the brackets?

[XMan]

Married, Filing Jointly

15% - 0-45,200
28% - 45,201 - 109,250
31% - 109,250 - 166,450
36% - 166,450 - 297,300
39.6% - 297,300+

Married, Filing seperately

15% - 0-22,600
28% - 22,600 - 54,625
31% - 54,625 - 83,225
36% - 83,225 - 148,650
39.6% - 148,650+

Single

15% - 0-27,050
28% - 27,050 - 65,550
31% - 65,550 - 136,750
36% - 136,750 - 297,300
39.6% - 297,300+

Head of Household

15% - 0-36,250
28% - 36,250 - 93,600
31% - 93,600 - 151,600
36% - 151,600 - 297,300
39.6% - 297,300+

Is this not the most uselessly complex thing you've ever seen? I mean, jeez, why not just have one set of brackets for everybody, and up the ante a little bit? The top end for the brackets goes up, but only about 1500 a year. If you got a promotion/raise, like I did in the last year, it could catapult into the next higher bracket - I went from the 15% to 28%. Ouch. There goes 13% of my raise. I'd say do something like this, and have -

All persons (doubled for married?)

15% - 0-50,000
28% - 50,000 - 100,000
31% - 100,000 - 200,000
36% - 200,000 - 400,000
39.6% - 400,000+

 

[freebee]

Instead of cutting taxes, lets not pay taxes, Wheeeeee!!!!

Actually, cutting taxes doesn't really encourage spending like the supporters of the tax cut likes to believe. Thats because the marginal propensity to consume for wealthy individuals (the ones who benefit most) is lower than for middle class individuals, so any decrease in taxes given to them will not be consumed as readily.

I don't know what this all means, but thats what my teacher says.

 

[MrChicken]

I would say that the tax cut would increase spending, especially in the lower brackets. True the "rich" would have more money to save than spend since they are not likely to have a need to spend more than they already do. But also consider that the "rich" are likely to invest that money somehwere instead of just stufffing it under the mattress. That investment, while not being "spending" per se, should also help the economy.

I myself as middle class america himself, would certainly spend any tax break I get, right now on my outrageous utility bill. That would allow to spend as much money as I normally would eating out and buying pc parts, instead of going to the local utility monopoly.

My idea for taxes would have been similar to XM's. Raise the brackets up so you dont pay any taxes until a certain income. Second to that, a 3% cut across the board is ok by me also.

 

[XMan]

Actually, cutting taxes doesn't really encourage spending like the supporters of the tax cut likes to believe.

Really? Gee, that's the exact opposite of what happened when Ronald Reagan and a guy named John F. Kennedy (perhaps you've heard of him?) made sweeping tax changes during their respective terms.

 

[Mister T]

as a matter of principle, I think no one should be paying more that 1/3 of
their income to federal income taxes.

The 39.6 tax rate is ridiculous...

 

[JellyBaby]

Technically the federal government shouldn't even be taxing income in the first place. Libertarians aren't the only ones who often point this out: Alan Keyes (R) and a few others know this reality. It's unconstitutional.

I'd like to see it abolished in my lifetime or reduced to around 5-10%...just enough to pay for the services and "benefits" I might actually use or need.

Anyway, nobody understands the tax code anymore. I suspect many politicians (aka lawyers) want to keep it that way. Tax attornies are plentiful, have a strong lobby and would not wish to see such a lucrative life disappear. Still, it's America and just about anything is possible.

 

[tim0thy]

<< The 39.6 tax rate is ridiculous... >>



yeah damnit, my paycheck gets raped by uncle same weekly, well, bi-monthly now, but still hurts (and it's higher than 40% tax too).

tax is suck. flat tax sounds great.