By: John L.

John L. — Sun, 05 Apr 2015 12:58:53 +0000

Today’s U.S. tax code is fully progressive for everyone except those whose income is derived predominantly from Cap Gains, Dividends, and Carried Interest (not to be confused with Regular Interest). The wealth demographic where this predominance occurs is roughly the 0.1% class. And by the 0.01% class, the marginal rate is FAR lower. Starting roughly at the 0.1% wealth class level, America has REGRESSIVE taxation. It’s called “supply side” fiscal policy.

For instance, a 1%-er pays an average 24% Fed rate, but a 0.01%-er pays an average 14% Fed rate. Surprise! Remember George Soros’s 9% tax on $80M? Remember Romney’s 11% tax on $25M? The 1% class pays 40% of our tax, but now owns nearly 50% of our wealth (much of it offshore and untaxed). From 1945-1980, when we had a TRUE progressive tax code for ALL Americans, the 1% paid 33% of the tax and owned around 25% of all wealth.

You tell me which fiscal period was more equitable, proportionate, and smart. Oh, the 1% class, and mostly the 0.1%, continue to suck wealth from the 99% at a 10-year moving average rate of 0.4%/yr. We have not been this socioeconomically out of whack since 1928.

http://www.daviddegraw.org/peak-inequality-the-01-and-the-impoverishment-of-society/

Your assertion that the “wealthy” had loopholes 1945-1980 is patently false. Yes, there were tax credits available (nobody paid the 90% marginal rate!), but the more you made (from ANY source), the higher your rate. NO exceptions.

Comments on: The OECD Says The United States Has The Most Progressive Tax System

By: John L.