Comments on: Income Tax Rates Must Rise To Offset Higher Deficits? Not So Fast.

By: Cole

Cole — Tue, 01 Sep 2009 03:07:04 +0000

I think the top bracket is also relevant for the current circumstances because of Obama’s tendency to tax upper income before mid to lower income. If he does raise taxes on anyone, it would be the top bracket. He’s not going to raise across the board, especially not if he wants to get re-elected.

Very interesting read Chad, thanks.

By: Ryan

Ryan — Thu, 20 Aug 2009 16:35:08 +0000

..similarity if the top 10% “tax bracket tax rate vs. debt-to-GDP ratio” is down then it should be increased correspondingly.

Edit: In the above comment I would like to change “tax bracket vs. debt-to-GDP ratio” to what i use in this post, “tax bracket tax rate vs. debt-to-GDP ratio.”

By: Ryan

Ryan — Thu, 20 Aug 2009 16:31:17 +0000

If anything it says to me that the top 10% could use a tax hike compared to historic levels. It looks as if at about 1986-87ish there is an inflection point. Assume that the the 10% pay 71% (i have no reason to doubt that) then clearly the top 10% haven’t been paying a steady lets call it tax bracket vs. debt-to-GDP ratio. I have no problem wiht the top tax bracket paying less assuming the debt-to-GDP ratio is proportionally down.

By: Chad Brand

Chad Brand — Thu, 20 Aug 2009 14:54:21 +0000

The top rate is most important because the wealthiest Americans represent the largest percentage of federal income taxes paid. The numbers are as follows: top 1% pay 40% of the total, top 5% pay 61% of the total, and top 10% pay 71% of the total.

By: Bobby Kolev

Bobby Kolev — Thu, 20 Aug 2009 13:33:41 +0000

The question “why the tax cap bracket” kept coming to my mind while reading too.

It is interesting to know how much of the taxs revenues are generated by the highest bracket versus all others.

It is logical to assume lawmakers will protect the few rich at the expense of the rest.