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Originally Posted by saden1
Unless I am not privy to some information you are my understanding is that he is going to "jack up" the tax rate on the top 2% of income earners. These are the same people who hardly pay the same tax rate as middle class Americans.
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Every Democrat running for President wants to raise taxes on "the rich," but they will have to do something miraculous to outtax President Bush. Based on the latest available tax data, no Administration in modern history has done more to pry tax revenue from the wealthy.
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The rich pay a higher rate than middle class Americans. The top 1% earns 21% of the income, but pays 39% percent of the taxes. That means they are paying a higher rate than the people below them. Bush did lower the tax rates for these people, but the amount of taxes they paid has increased. Raising taxes does not raise tax revenue. When the taxes are lower, the economy does much better and there is more total income. The rich people are the ones creating the jobs. The more you tax them, the more it will hurt the economy.
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Last week the Congressional Budget Office joined the IRS in releasing tax numbers for 2005, and part of the news is that the richest 1% paid about 39% of all income taxes that year. The richest 5% paid a tad less than 60%, and the richest 10% paid 70%. These tax shares are all up substantially since 1990, and even somewhat since 2000. Meanwhile, Americans with an income below the median -- half of all households -- paid a mere 3% of all income taxes in 2005. The richest 1.3 million tax-filers -- those Americans with adjusted gross incomes of more than $365,000 in 2005 -- paid more income tax than all of the 66 million American tax filers below the median in income. Ten times more
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Obama also wants to raise the capital gains tax, even though more tax revenue comes from it when the tax rate is lower.
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The amount of capital gains declared on tax forms has doubled since the tax rate was cut to 15% from 20% in 2003, which has also contributed to more Americans being "rich." Dividend income has also increased by at least 50% since that rate was cut to 15% from nearly 40% in 2003.
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This is a very good article about taxes.
Taxes and Income - WSJ.com
...sorry about this being off-topic.