History of Federal Individual Income Bottom and Top Bracket Rates
http://www.ntu.org/tax-basics/history-o … ual-1.html
Seems like since the 80s, taxable income for the top bracket has stayed about the same, while taxable income for the bottom bracket has decreased.
Also interesting how the 'bottom bracket' included up to 45k in 2001...Does that say the bottom income earners earned more 10 years ago? Kind of sad. Though I could be reading it wrong. The chart was admittedly a little confusing to me, as the income levels fluxed so much (does it adjust for inflation?)
Also...what you don't see is that percentage rises rapidly. I pay about 20% at 35k, and when I made about 18k I paid about 10%-12% if I remember correctly. Seems to taper out as you get towards the top, since I don't have that much more %%% to go, even though I didn't climb too substantially much in income level.
I thought the most interesting part was at what level of income...way back when it was up at $! mil and $5mil, now look where the top stops...so, those making in the millions are barely paying squat on anything over 300,000 or so....A super smart guy pointed out to me that the wealthy get the most benefit of our stellar infrastructure, and should therefore, contribute to its upkeep more...Also, I noticed how the bottom climbed on relatively small increases of income, so say you make $45,000 and pay 10 or %15, someone making 4 or 5 times that amount is only about %30...numbers are fun
Plus,let's not forget Corporations are people too Actually, they are treated as such on taxes, when a business incorporates they are able to file as an individual...
My stepdad owns a coporation. He has himself, plus three employees, but he is incorporated. He pays about 20k/year to each employee (low cost of living area, btw) for skilled labor jobs. He spends a ton of money on materials and supplies. He also pays an administrative assistant/receptionist about 20k, too. He is counting on the business to provide a retirement pension, so he doesn't have a 401k or anything. The take-home pay isn't astronomical, but he lives farely well within his means.
Should he not get a tax break and be able to file as an individual? Afterall, he runs an entire business basically on his own, plus paying 60k/ year (creating 3 jobs) for laborers that he may not need, as he ran the business soley on his own for over 20 years, but rather because he wants a growing, thriving business that will outlive him. Do you want to burden him with more taxes, when he has done an amazing ambitious thing? When he could easily make more money doing something else? He is giving back to the town he lives in by starting a business there, employing local people, and buying from local distributors. Where does the incentive to start a business go, when you learn you must file as a corporation the minute you hire your first intern?
There are many like my stepdad. Many business not taking in a whole hell of a lot of money, but are there because they enjoy what they do, and they are helping the town's economy by being there. There are many quality, small businesses which barely break even. Should we lump these businesses, which are corporations, with the multi-million dollar corporations we are probably thinking of when we say "corporations aren't people?" I'd wager to guess that the vast majority of corporations are not huge money makers, and they can use all the tax breaks they can get. Small, local ones, like my stepdad's business.
Kathleen, I agree with you, I wondered if Obama through out the 250,000 figure as a low ball finding they would agree somewhere aroung 500,000...I think that would be a good point at which to create incentive, and protect small business as well..Fot the small amount of employees your step dad employees, he should be considered a small business. I believe our government should do back flips to protect the true small business people, but not the hedge fund guys etc. It your raking in millions you do not need any other incentive to hire, truthfully, they are being greedier with their profitt margins...the human condition I suspect, as oil companies made histrical profitts while the rest of the country suffered a great recession...
That's not to say that there are multi-million dollar corporations that DO use the extra money saved to give back to the employees. Where I work, if we pull in more money than was projected, the extra money goes towards our quarterly bonuses (not just CEOs, but ALL full time employees). Many large corporations do this; it's just the ones with questionable ethics that hit the news and make everyone else look bad.
I agree, you hear more about bad press than good press, dirty laundry gets the ratings...But after this huge recession everyone will need to give more in order to balance the deep cuts that must happen if we do not want austerity measures in our near furure...I believe if Americans could learn to be more frugal, kind of self serving austerity we could pay off the debt and still rebuild an economy...but I KNOW, tax cuts for the top will not do it, never has, it's a fallacy...it just creates larger profit margins, if some profit share that is fantastic, but the bad boys and girls that do not play by the rules have always ruined things for everyone else...I remember in school we couldn't chew gum because some idiot had stuck it under his desk...he's probably a hedge fund guy today,LOL
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