A fair tax table

[SHRED]

Here is what a "shared sacrifice" starting point would look like.

CBS: Democrats propose new tax brackets for millionaires, billionaires

~snippet~

Currently, the top tax bracket begins at an income of $373,000 per year; income above that level is taxed at 35 percent. Schakowsky contends this fails to distinguish between the "well off" and the superrich, such as a group of hedge fund managers whose average income last year topped $1 billion.

Schakowsky's bill, called the Fairness in Taxation Act, would tax income between $1 million and $10 million at a rate of 45 percent. Income between $10 and $20 million would be taxed at a rate of 46 percent, and income between $20 and $100 million would be taxed at 47 percent.

Income between $100 million and $1 billion would be taxed at a rate of 48 percent, and income over $1 billion would be taxed at 49 percent. For those making over $1 million a year, capital gains and dividends would also be taxed as income. Schakowsky claims the bill could raise more than $78 billion for the government.

"A tax system where families earning several thousand dollars are taxed at the same rate as millionaires is unfair, and unsustainable," Rep. Donna Edwards (D-Md.), one of the bill's co-sponsors, said Wednesday. "At a time when House Republicans are demanding that working families, teachers, and firefighters bear the burden of reducing the deficit, millionaires should be required to contribute their fair share."

http://cpc.grijalva.house.gov/index.cfm?sectionid=49&parentid=6§iontree=&itemid=276

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[Angry Dragon]

1. K&R

[Nye Bevan]

2. For starters, how about raising hedge fund managers' tax from 15% to 35%? (nt)

[MH1]

3. Does it include indexing for inflation?

The thresholds sound fine now, but the failure to index to inflation is how the AMT became a problem.

[Cresent City Kid]

4. This would make the rates match income distribution more closely

I'm so tired of the right repeating the sob story of the small business owner right at the cut off in an attempt to hide the billionaires behind him. The top rate is in essence a flat tax for both the "well off" and the "superrich" as mentioned.

I'm even more tired of people buying the "taxing the rich kills jobs" bullshit.

[hfojvt]

5. 46, 47, 48, 49

wtf? Why not go by 5's. A 1% bump is barely worth the trouble.

Also, it would be simpler to tax capital gains and dividends as income for EVERYBODY. Why the hell should somebody who makes $600,000 a year be able to get $20,000 in capital gains and another $10,000 in dividends that is taxed at a lower rate than the wages of somebody who makes less than $30,000 a year. That's ridiculous and it just adds another layer of complexity.

Even my own example was ridiculous. In 2009 I made about $15,000 from the sale of real estate that I originally bought in 1987, and I paid zero federal income taxes on that income. So if $15,000 sorta falls into your lap with zero effort, you pay no taxes on it, but if you work for that $15,000 (which would be a full time job at minimum wage) then you pay, not only $1,147 in FICA taxes, but also income taxes, and even income taxes on that $1,147 in FICA taxes that you don't even get to spend. That's bassackwards.

[liberal N proud]

6. The Democrats need to publicize this and make it their talking point

Not letting the GOPer's and the M$M change the subject.

This is the only thing they should talk about. But hey, they don't listen to me.

[Uncle Joe]

7. Kicked and recommended.

Thanks for the thread, SHRED.