brambosh express

alternrg:

jonathan-cunningham:

Rep. Jan Schakowsky (D-Ill.) announced new legislation on Wednesday that would create new tax brackets for earners who make significantly more than the baseline for the current top income bracket.

…

Schakowsky’s bill would create new tax brackets for earners making between $1 million and $1 billion annually, with tax rates starting at 45 percent with the millionth dollar and increasing on a sliding scale. The legislation would also tax capital gains and dividend income as ordinary income for those earning over $1 million in a given year. A full list of the new brackets appears below:

$1-10 million: 45%

$10-20 million: 46%

$20-100 million: 47%

$100 million to $1 billion: 48%

$1 billion and over: 49%

This is a long time coming. For those of you who don’t know how our income tax system works, it’s called a “graduated income bracket”, meaning that your income is taxed at the exact same rate as everyone else, until it exceeds a certain bracket (10% of your income is taxed up to around $9,000, then 15% is taxed until around $35,000, then 25% until around $85,000, etc.). The brackets currently stop at around $375,000: no matter how much you make, you will always be taxed at the same rate above that amount. Jan Schakowski is proposing that we create new brackets, for incomes in the ranges above. Be prepared for a media blitz of nonsensical defenses for the outdated and ridiculously low brackets (assuming everyone doesn’t just politely ignore it all together).

So if this does pass, any guesses as to the percentage of the upper bracket earners that will decide to change residence. Maybe, hopefully it’s a wash but should’t the bracket for top earners start at 50 percent and top off around 66 percent?

How about very little? Our nation has EASILY the lowest tax rate of not just income tax but other taxation than any other industrialized nation.