It's very hard to read your posts sometimes.
yeah and taxes are 14 percent of gdp.[quote]
This has nothing to do with my tax bill.
My taxes feel high because the "high earners", I guess you mean those who make a lot of money, much more than I do, increased their earnings by an average of 7.5% per year for the last 30 years. But relative to their high income, their taxes is low.Your taxes seem high because the highest earners having seen an avg yrly growth in income around 7-8 percent the last 30 yrs are paying a high percentage of total taxes but, as a percentage of their earnings an extremely low rate
Let's take your number. Let's say a "high earner" gets a 7.5% raise every single year over the last 30 years. Does his tax rate decease? Increase? Stay the same?
I don't know that much about math, but last time I checked our tax code is based on percentages rather than absolute numbers. A person making 7.5% more will need to pay the same or greater portion of that extra 7.5% to the IRS.
Income growth does not affect tax rate. In fact, higher income incurs higher tax rate. The more one makes, the more one pays.the fact they have had exponential income growth masks the historically low rates they enjoy.
Yes I do think that. They pay more in absolute dollar terms and in percentages (income tax).You think your taxes are high based on the comparison between your earnings and taxes while basing the conclusion high earners are fairly or over taxed by the totals taxes paid in and of itself.
Using that rate schedule from wikipedia, I came up with these numbers:
Tax for $75,000/yr income is $4750 + 25%(75000 - 34500) = 4750 + 25%(40500) = 4750 + 10125 = $14875
Tax for $10,000,000/yr income is $110016.5 + 35%(10,000,000 - 379150) = 110016.5 + 35%(9620850) = 110016.5 + 3367297.5 = $3,477,314
Effective tax rate for $75000/yr income is 14875/75000 = 19.83%
Effective tax rate for $10,000,000/yr income is 3,477,314/10,000,000 = 34.77%
In absolute terms 14,875 < 3,477,314
In relative terms 19.83% < 34.77%
I don't understand how you came up withas a percentage of their earnings an extremely low rateI agree. Maybe it's time to trim the spending.if spending were kept to 18 percent of gnp our current system would have a defict of 23% of total spending which is unsustainable.
I'm sure when you buy more stuff than you could afford you would cut out some other stuff that you no longer need. Maybe cutting back on the summer trip from 3 weeks to 2 weeks. Maybe cutting the pay channels on your cable TV. You could go to your boss and demand a raise to fund your new hobby or toys, but I doubt that would go well.
I don't have time to read the article you posted. Need to go to hockey. I'll read it tomorrow.