Say a flat 35% after the first $50K for couple and $25K for singles? A couple at the $56,800 mark would pay $2,380 in taxes versus the $8520 they are paying now. Even someone at the top bracket would get a cut of about $17500.
Here's a chart of the current income tax rates after G.W.'s cuts (pulled this off the first site I found, I'm assuming it's correct):
Joint return Single taxpayer Rate
0?-----------14,000 0?-----------7,000 10.0%
14,000?----56,800 7,000?----28,400 15.0%
56,800?--114,650 28,400?--68,800 25.0%
114,650?174,700 68,800?143,500 28.0%
174,700?311,950 143,500?311,950 33.0%
311,950 and up 311,950 and up 35.0%
Now, before G.W.'s tax cuts, Capital gains were taxed at 20%, and Dividends were taxed as normal income. Thanks to G.W. both are now taxed at a flat 15%. I have a to believe a huge chunk of Bush's fat-cat friends are making out like bandits being taxed at the same level as someone who is lower-middle class, assuming a major chunk of these fat-cats' income is from capital gains and dividends, which is not an unreasonable assumption to make.
Now this isn't meant to be a veiled attack on Bush, I'm trying to make that as flagrant as possible, based on the actual fact of the matter. But that's not the primary point of this post. The point is, why is it that our government won't go to a simpler, fairer system like this? Is it because of all the fat-cats making bank on their capital gains and dividends, or is it something else?
Here's a chart of the current income tax rates after G.W.'s cuts (pulled this off the first site I found, I'm assuming it's correct):
Joint return Single taxpayer Rate
0?-----------14,000 0?-----------7,000 10.0%
14,000?----56,800 7,000?----28,400 15.0%
56,800?--114,650 28,400?--68,800 25.0%
114,650?174,700 68,800?143,500 28.0%
174,700?311,950 143,500?311,950 33.0%
311,950 and up 311,950 and up 35.0%
Now, before G.W.'s tax cuts, Capital gains were taxed at 20%, and Dividends were taxed as normal income. Thanks to G.W. both are now taxed at a flat 15%. I have a to believe a huge chunk of Bush's fat-cat friends are making out like bandits being taxed at the same level as someone who is lower-middle class, assuming a major chunk of these fat-cats' income is from capital gains and dividends, which is not an unreasonable assumption to make.
Now this isn't meant to be a veiled attack on Bush, I'm trying to make that as flagrant as possible, based on the actual fact of the matter. But that's not the primary point of this post. The point is, why is it that our government won't go to a simpler, fairer system like this? Is it because of all the fat-cats making bank on their capital gains and dividends, or is it something else?
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