Which is more shameful? That 48% of individuals pay no income tax, that 75% of corporations pay no income tax?
...or that if you have income of $10 million or more per year, you actually pay a lower effective income tax rate than the average person making $100,000 per year because most of your income is in the form of qualified dividends or long term capital gains taxed at a flat 15% rate, thanks to the Bush tax cuts?
Source: Martin A. Sullivan, "A Good Reason to Raise the Capital Gains Rate," Tax Notes Today (August 12, 2008) page 535.
- Anonymous9 years agoBest Answer
It's not shameful, but it needs to be corrected. The Laffer curve is correct. The problem is which taxes to raise and which to lower or leave alone. Some taxes increase government revenue, some ultimately don't. Capital gains is too low. It should be at least 18%. And the SS salary exemption cap is crazy. That needs to go.
- HorseLv 69 years ago
But if that person making $100,000.00 still pays $15,000.00; what is your complaint? I can't wait until I make over $100,000.00 a year; but do you really think that all people/families that make over $100,000.00 have capital gains? And how much capital gains can a family that just makes a $100,000.00 really have, if their income is only $100,000.00? And here is a thought, go to school, or get tech training, or some specialized skill training and you too can make over $100,000.00 per year. I really think you misguidedly bought into someone's tax propaganda.
My ex and I in 2009 made approximately $125,000.00, gross! None of it was from dividends, or capital gains, or any other investments. Funnily enough, we still had to pay taxes at filing even though I had extra pulled out of my paycheck. We qualified and received the same deductions as we did the year before when we only made $85,000.00.
- 9 years ago
The problem with raising Capital Gains taxes is that it will have a huge impact on retirees and investment. I have paid Capital gains and you will, too. Why would I invest knowing the government would take say 25% of my profit? I would never take that kind of risk.
Corporations create a treasure trove of taxes.
We should eliminate the income tax and replace it with a consumption tax. The rich would pay even more than they do now.
- Anonymous9 years ago
The more you tax investment income, the less investment you get.
Why do you think countries like Germany and France have lower corporate and capital gains tax rates than we do? Because it is economically unsound and stupid to have high tax rates on business and investment - it acts to discourage economic growth.
- How do you think about the answers? You can sign in to vote the answer.
- Anonymous9 years ago
they are both equally shameful. I could care less about the person making 10 mil a year and paying a lower rate than someone else. Its their money. But, all the tax loop holes should be closed
- JimboLv 79 years ago
I don't know if either is shameful but I'm curious that if you're in the income bracket that pays income taxes and you're so fond of them, why don't you pay my taxes too. After all, if you think we should pay MORE TAXES, go for it. Be patriotic and pay mine too. I noticed that all those rich people in Hollywood find ways to hide their income from taxes. Hell, even your lib hero John Kerry and little Timmy Geithner found ways to avoid paying taxes. They think the rich should pay more taxes but not them. Isn't it amazing how the libs have one standard for them and another for us?
- JadedLv 49 years ago
That I am in the category that pays the most income tax. Sorry didn't like the choices.
- MarkLv 79 years ago
How about that the Dems had the power during the past two years and didn't make our tax rate laws into the perfection that Sadcat demands?
- SchmuckLv 79 years ago
Flat tax regardless of income. Everybody.
- Bot JohnsonLv 79 years ago
The individuals. At least the corporations employ people and provide them with a pay check, not to mention provide goods and services...the people who don't pay taxes just leech off the government and cause everyone else's taxes to go up.