In any case, increasing the tax rate on the top 1.5% will still not even make up the above $30 billion.
Three Good Reasons to Let the High-End Bush Tax Cuts Disappear This Year
Letting the Bush tax cuts for those making over $250,000 a year (notice, in the progressive tax system we have, their income under $250k will still be taxed like everyone else in the country, it's just their income over $250k that will be taxed more) will save us $690 billion dollars over the next 10 years. In case you're not familiar with the Bush tax cuts, we're talking an increase from 35% to 39.6%. A 4.6% increase results in $690 billion in savings over the next 10 years. And that isn't taking into account the save on the enormous interest we pay.
Here is what the tax rates were before Reagan's cuts, adjusted for inflation. (And we survived good before then)
0% $9,715.89
14% $15,716.88
16% $14,002.31
18% $34,005.61
21% $45,721.83
24% $57,723.80
28% $70,297.31
32% $85,442.66
37% $100,588.02
43% $130,878.72
49% $171,456.84
54% $244,611.77
59% $312,622.98
64% $464,076.53
68% $615,530.07
70%
The dollar amounts is the max that the rate applies to. So, for example, the rate is 0% for income up to $9,715.98. It's 14% for income between $9,715.90 and $15,716.88. There doesn't need to be that many brackets, but I think we should use these as a base.
This is what they are now.
10.0% $17,000
15.0% $69,000
25.0% $139,350
28.0% $212,300
33.0% $379,150
35.0%
Here is an idea of what I want.
0% $10,000
8% $40,000
15% $60,000
20% $80,000
25% $150,000
35% $250,000
45% $650,000
55%
Here is what people of these income levels would pay in income tax.
Income: Before Reagan / Today / Mine
$12,000: $319.78 / $1,200.00 / $160.00
$20,000: $1,645.39 / $2,150.00 / $800.00
$30,000: $3,445.39 / $3,650.00 / $1,600.00
$45,000: $6,475.22 / $5,900.00 / $3,150.00
$60,000: $10,144.62 / $8,150.00 / $5,400.00
$75,000: $14,532.72 / $11,000.00 / $8,400.00
$90,000: $19,560.59 / $14,750.00 / $11,900.00
$120,000: $31,825.31 / $22,250.00 / $19,400.00
$150,000: $45,872.59 / $30,069.50 / $26,900.00
$200,000: $71,799.74 / $44,069.50 / $44,400.00
$260,000: $104,969.16 / $63,254.50 / $66,400.00
$350,000: $159,938.01 / $92,954.50 / $106,900.00
$400,000: $191,938.01 / $109,871.50 / $129,400.00
$600,000: $325,374.95 / $179,871.50 / $219,400.00
$750,000: $430,064.34 / $232,371.50 / $296,900.00
$1,000,000: $605,064.34 / $319,871.50 / $434,400.00
$2,000,000: $1,305,064.34 / $669,871.50 / $984,400.00
$10,000000: $6,905,064.34 / $3,469,871.50 / $5,384,400.00
Notice that today versus before Reagan, poor people pay more, the middle class pays about the same and the rich pay significantly less. And what has this done for us, other than build up a gigantic debt? Nothing.
My tax brackets would significantly decrease deficit and you could remove a lot of exemptions as well, for both the rich and poor/middle class.
Tax bracket information:
http://www.taxfoundation.org/files/fed_individual_rate_history_nominal&adjusted-20110909.pdf
