The fact is you can play with rates, and cutting a rate does not necessarily cut revenues. Revenues and rates are not directly tied. Lower rates can encourage more economic growth which result in more overall tax revenues.... Same as higher rates can stifle economic activity and actually drive down tax revenues.
If a wealthy person can engage in activity A and have to pay 39% or activity B and pay 15%, that means any activity that is at the 39% tax rate must return on investment much more than the activities that return and are taxed at 15% to be worth while. I make 1 Million dollars at 15% tax I keep 850k. I make 1 Million dollars at 39% tax rate I keep 610k... so I need my investment to make not 1 Million but about 1.4 Million to make the same actual return....
Well said, but I was saying that a 25% rate is lower than a 39% rate on millionaire income tax.