and the tax brackets should go all the way up to the highest income level
What does that even mean? They’re lower limits. Everything that exceeds the lower limit for the top bracket is taxed the top rate, which has no upper limit.
and the tax brackets should go all the way up to the highest income level
What does that even mean? They’re lower limits. Everything that exceeds the lower limit for the top bracket is taxed the top rate, which has no upper limit.
HubertManne@piefed.social 2 days ago
It means the highest tax bracket should not be in thousands when the top makes hundreds of billions.
lmmarsano@lemmynsfw.com 1 day ago
The highest rate is on annual taxable income in the hundreds of thousands and up. The hundreds of billions are also getting taxed that top rate.
Your statement is muddled. Maybe the word same is missing like
Some of your ideas equivocate themselves. Income taxes are already progressive. Taxable income already includes income other than wages.
The way you suggest realizing things that are already true draws into question whether you’ve ever filed taxes. Likewise for the people agreeing with you: have they ever filed taxes?
HubertManne@piefed.social 1 day ago
Yes what I meant is the rate should not stop increasing at such a low amount. In fact the hundreds of billions do not pay the rate because of the way we tax work higher than returns and because social security and medicare have a max point. Basically the folks paying the highest rate are the folks that make it to that highest rate for what is still a common profession like doctors and lawyers. After that its escape velocity for taxes.
lmmarsano@lemmynsfw.com 1 day ago
That makes more sense.
Long-term capital gains are taxed significantly less than ordinary income: that’s partly to incentivize stabler markets by rewarding long-term investments over short-term market timing activity.
The annual ceiling on contributions to social security is bullshit & needs to be eliminated. However, there’s no such ceiling for medicare:
Have you looked at the taxable income distribution/quantiles? The top marginal tax rate seems to begin somewhere between the minimum adjusted gross income (AGI) for the top 1% & 2%. < 1% have an AGI over $1M. We’re talking about increasing marginal rates for the top fractions of a percent here. While that increases federal revenues, it’s unclear that will boost revenues as much as we need.
For example, the Social Security administration publishes annual reports on solvency proposals with summaries. Eliminating that taxable maximum alone won’t save social security. Increasing the payroll tax rate, however, will definitely save it. It’d help to know the effect of taxing all taxable income.
Keeping programs solvent might require increasing taxes on the bulk or a more significant part of the population.