Posted on 10/24/2009 6:42:46 PM PDT by reaganaut1
Federal income tax rates would have to be nearly tripled across the income spectrum if Congress were to close the deficit in fiscal year 2010, according to a new report from the nonpartisan Tax Foundation. Instead of taxing joint filers with rates ranging from 10 percent to 35 percent, tax rates would have to start at 27.2 percent and reach up to 95.2 percent.
"Federal government spending levels are so high that even if policymakers were willing to stop debt-financing government services, the federal tax system in its current form wouldn't be able to raise that much," said Tax Foundation Director of Policy and Communications Bill Ahern, who authored the report, "Can Income Tax Hikes Close the Deficit?" The paper is No. 197 in the Tax Foundation Fiscal Fact series and is available online at http://www.taxfoundation.org/publications/show/25415.html.
"If high-income people had to pay a federal tax rate over 90 percent, plus state and local income taxes and other taxes, total tax rates would be well over 100 percent for many households," he said.
If the federal government were determined to close the 2010 deficit, even resorting to higher income tax rates across the income spectrum, the average tax payment of someone making between $75,000 and $100,000 would jump from $7,055 to $20,515. Taxpayers with AGIs over $1 million would see their tax bills climb from $800,000 to almost $2 million.
Even in 2012, when the President's Budget projects a lower deficit, tax rates would still be need to be prohibitively high in order to balance the budget: nearly double, with rates ranging from 18.7 percent to 74.1 percent.
"... the high tax rates necessary to balance the budget in the next several years would discourage all income-producing endeavors," Ahern said.
(Excerpt) Read more at taxfoundation.org ...
No mention of the Laffer Curve.
Collapse the dollar repay in cheap dollars
Tax rates triple?
Since half the people in this country pay zero taxes, and zero times three still equals zero, how would that all work?
"Show me just what Mohammed brought that was new, and there you will find only things evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelogus
LOL! And choke off all economic activity.
Obama’s path to radical socialism — debase the dollar. Bank on it.
Stop the fricken spending already!! Obama and the socialist big spenders must go!!
Meaning we’ll have to pay 120% of our income?
There is no 10% bracket in 2010
Or the dollar would have to fall internationally by that much.
That would destroy our way of life within a few years.
Spending must be cut, and entire agencies/programs must be eliminated.
Nancy is going to steal your savings from your 401, and Pensions
Or entire departments of Federal Government would need to be disbanded. Guess which one won't lead to revolution?
I thought I was already paying more than that.
The author is probably down at the local convenience store investing his income in lottery tickets.
Everyone would have to pay some level of tax. That’s all there is to it. Collecting it is another matter. It is my firm belief that if we had a resonable government, put a hold on all spending, got rid of all the crooks in Congress and the White House, the American would pay the taxes. IF...if it would help this country. But everyone has to chip in to get it done. The way we are going now, our government will destroy this country.
There’s no way out of the deficit dilemma without a VAT (Value Added Tax).
It’s coming, and it will absolutely crush the middle class.
http://money.cnn.com/2009/06/05/retirement/next_crisis_americas_debt.fortune/index.htm
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