Ocasio-Cortez is already moving to Overton window.
http://www.lawyersgunsmoneyblog.com/2019/01/extremism
From my perspective: She's not yet gone far enough. Here's a potential single tax table. Assume the math is done such that marriage penalty doesn't exist, and kids give a reduction.
1. Under 25,000: You pay no tax.
2. Between 25,000 and 50,000: 10%
3. Between 50,000 and 100,000: 20%
4. Between 100,000 and 250,000: 30%
5. Between 250,000 and 500,000: 40%
6. Between 500,000 and 1,000,000: 50%
7. Between million and 2 million: 60%
8. Between 2 million and 5 million: 70%
9. Between 5 million and 10 million: 80%
10. Anything above 10 million: 90%
Median household income in American is ~60,000, call it 30,000 per person. So, that's $5,000 taxable per person which is $500. Or, $1,000 for a married couple with no kids.
Meanwhile, a household income of $200,000, call it $100,000 per person has a more complicated time: 10% * 25,000 + 20% * 50,000. That's $2,500 + $10,000 = 12,500 per person, or 25,000 for the couple.
And a household that brings in 2 million dollars, call it a million per person? That's 2,500 + 10,000 + 150,000 * 30% + 250,000 * 40% + 500,000 * 50%. That's something like 2,500 + 10,000 + 45,000 + 100,000 + 250,000, or a total of 407500 per member of the family. That's a 40% tax rate on couples making 2 million dollars.
And notice: I could do it without a spreadsheet.
http://www.lawyersgunsmoneyblog.com/2019/01/extremism
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AOC has thus far given us a fairly moderate tax proposal. I'm happy with it, but not satisfied, if that makes sense.
ReplyDeleteWhat I think is unreasonable is how the corporate media seems to want to largely pretend that it doesn't understand how a progressive tax system works. Like the 60-70% number she proposes would just be grabbed off the top of everyone's paycheck.
There's good reason for that, Michael Moceri ! Your point to it, and I think you know exactly why they do.
ReplyDelete.
ReplyDeleteTax rates aren't why doing taxes is complicated defining income is why taxes are complicated
ReplyDeleteGonna point out that this could be rephrased to be calculated even more easily (and, in fact, this is the smart way to program it) by just pre-calculating all the aggregate margins:
ReplyDeleteTaxes:
Under $25K: 0.
$25K - 50K: (income - $25K) * 10%
$50K - $100K: $2.5K + (income - $50K) * 20%
$100K - $250K: $12.5K + (income - $100K) * 30%
$250K - $500K: $57.5K + (income - $250K) * 40%
$500K - $1M: $157.5K + (income - $500K) * 50%
$1M - $2M: $407.5K + (income - $1M) * 60%
$2M - $5M: $1007.5K + (income - $2M) * 70%
$5M - $10M: $3107.5K + (income - $5M) * 80%
$10M - $ ∞ : $7107.5K + (income - $10M) * 90%
Need a spread-sheet? Feh. You barely need to know how to multiply. I can probably do it even more simply, in fact, by folding in the "-???" into the precalculation. Next post.
Under $25K: 0
ReplyDelete$25K - $50K: income * 10% - $2.5K
$50K - $100K: income * 20% - $7.5K
$100K - $250K: income * 30% - $17.5K
$250K - $500K: income * 40% - $42.5K
$500K - $1M: income * 50% - $92.5K
$1M - $2M: income * 60% - $192.5K
$2M - $5M: income * 70% - $392.5K
$5M - $10M: income * 80% - $892.5K
$10M - $ ∞ : income * 90% - $1892.5K
Yep. Now if only the federal tax forms didn't require a bloody vlookup, I'd be much happier.
ReplyDeleteBut, predictably, this readily heading towards discussion and simplification of this particular plan, while what I want to stress is:
1. Higher taxes for the rich. Like, 90 percent or more.
2. It shouldn't take a complicated piece of software for 90 percent of us to figure out our tax bill.
Afterrall, we are the only nation where it does.
Wouldn't object to removing the exemptions that give capital gains special status as somehow a more virtuous version of income, subject to less taxes. That would be a nice incremental first step at both appropriate taxation and simpler calculation.
ReplyDeleteAgreed. Then we can look at other ways we've arranged the tax code to incentive more virtuous spending: student loans, retirement accounts, and home mortgage interest deductions.
ReplyDeleteBut, agreed, let's start by taxing the rich into non-existence.
Tony Lower-Basch beat me to it. Different rates for income from capital gains is the most unfair, unprogressive part of our tax policy. It's baffling to me that someone making 100x what I make pays a lower rate simply because they didn't do any work for the money.
ReplyDelete