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Old 05-16-2019, 11:06 AM   #43 (permalink)
JSH
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Quote:
Originally Posted by redpoint5 View Post
The taper isn't automatic, but a function of the corrupt tax laws. A person must carefully invest to avoid the taxes. Our tax rates as listed are progressive throughout the rate structure. It's only things like $7,500 tax credits to buy a new car that end up making things regressive.
Income tax rates for EARNED income are progressive. They are currently 10, 12, 22, 24, 32, 35 and 37%. Tax rates for capital gains are "progressive" but much lower: 0%, 15%, 20%. That is what makes our tax rates regressive at the top and Buffett's tax rate fall below his employees.

Note: I put progressive in quotes because the reality is that we have two tax systems. The bottom 95% overwhelmingly pay the higher earned income tax rates while the top 5% and especially the top 1% have their tax rate capped at 20%. That is why I have a higher effective tax rate than billionaires.

This comes down to the idea in the USA that the people that own businesses are more important than those that do the actual work. The belief extends to high earners as well. If you make $500K as a surgeon on a W2 you will pay 37% in Federal income tax. If you make $500K investing in hospital stocks you will pay 20% Federal capital gains tax.
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