Progressiveness / regressiveness of tax
Is not about de jure rate for "taxable" income. It is about a ratio of tax paid to de facto income, which includes income in tax heaven.
[QUOTE=Tiny12; 424809]What you wrote above is absolutely not true. This is from a recent study by the nonpartisan Congressional Budget Office, and shows the average tax rate paid by people in various income groups. If you want to check me, go to.
[url]http://www.cbo.gov/publication/43373[/url]
And click on the first supplemental table. The figures below include ALL federal taxes, including social security tax:
Top 1%: 28. 9% average federal tax rate.
Top 5%: 24. 1% average federal tax rate.
Top 20%: 23. 2%
Fourth Quintile: 15. 1%
Third Quintile: 11. 1%
Second Quintile: 6. 8%
Bottom 20%: 1. 0%
Your belief is common. I believe it stems from two things:
1. Democrats like Obama knowingly lie because they think it will get them more votes. This is why Nancy Pelosi and Chuck Schumer favor only raising taxes on those making more than $1 million per year. Because they realize the "tax the rich" thing is populist bull shit, and a $1 million threshhold gets them more votes than a $250, 000 threshhold. There are a lot of people who make in the $250, 000 to $1, 000, 000 range in San Francisco and Manhattan, and Nancy and Chuck want their votes.
2. The desire of the majority to steal from the minority. People bend the truth to suit their beliefs and desires. They don't realize there are unintended consequences (on businesses, savings and investment) of stealing a large share of income from the wealthy.
If you download the Excel table I describe above on the CBO's web site, you'll see that your argument that the federal tax system would be regressive if not for the 2% reduction in social security tax doesn't wash. There's data there from 1979 to 2009, and the federal tax system is steeply progressive in all years.[/QUOTE]