> Tax cuts in capitol gains, lowering the tax rate on income over $250k/year,
And the tax system became more progressive. The share of taxes paid by the top 1, 5, and 10% went up.
> You mean to tell me you didn't benefit from those tax cuts?
Now half of US workers don't pay federal income tax. It's hard to cut their taxes more. (Yes, the poor pay SS, and it's a greater percentage of their income, but they get it back with interest. The rich don't break even on SS.)
Is that good?
What fraction of the tax burden should fall on each income cohort?
No, it didn't, the distribution of wealth just intensified. More $, more taxes.
The % of income paid as taxes by those people went down. As a matter of fact, people in the top tax brackets typically pay a lower % of their income in taxes than their secretaries.
EDIT: Also, where does this persistent myth that "half of all people pay no federal income taxes" come from? They do pay federal income tax. When I had summer jobs I paid income tax beyond FICA. When I made small money right out of college I paid income tax beyond FICA. I'm guessing it's the same story for you, as well. Poor memory?
> The % of income paid as taxes by those people went down.
How about some actual data? Note that tax rates aren't the whole story.
And, even if it was true, that doesn't tell us what fraction of the tax revenues that they're paying.
Do you really think that it's good when most people don't have much, if any, skin in the game? (As CA is discovering, collecting the bulk of your revenue from a small number of people makes tax revenues very volatile.)
> As a matter of fact, people in the top tax brackets typically pay a lower % of their income in taxes than their secretaries.
Nope. They pay higher rates on their earned income and they pay higher rates on the investment income. You're "confusing" the two.
And, their deductions are phased out.
> Also, where does this persistent myth that "half of all people pay no federal income taxes" come from?
Capital gains is taxed at a lower rate than your first 50k of income. Because of the lack of FICA if nothing else. 15% is lower than most people are paying on their income.
Same with the top tax brackets. Your 2nd million dollars will be taxed at around 35% if my memory is correct. If you're making 50k, you're paying more than 35% of your income in taxes. (fed + fica + medicare)
You mean to tell me you didn't benefit from those tax cuts?