Subject: you asked about taxfoundation.org
Bart, you asked,
> Who is taxfoundation.org?
Well, they're a nonpartisan educational institution
that has been commenting on taxes for over 70 years.
They also have a reply
to the email you quote, stating that it is "incorrect":
Another point here is that the supposed taxpayer
has no children and takes the standard deduction,
less common for those with higher incomes.
The email ignores the Alternative Minimum Tax (AMT),
which tends to affect those who take large deductions
or pay high state taxes -- such as people who
live in California, Massachusetts, and New York
(incidentally, liberal states).
Plus, it (as usual) ignores state taxes and Social
So here's a slightly corrected table, based on
living in California:
Now let's consider the effects of the deficit.
Assuming we spread the deficit as a future tax based on income:
We can see a couple things here. First,
the worst place to be is earning ~$125k if you're single and ~$200k
if you're married; people earning less than you
or more than you got better cuts. Second, married people
got better tax cuts than single people.
There are two other important things to note.
First, these tables only go up to $200k for single people and
$250k for married. People with really large
incomes, and there are more of these each year, got even
higher percentage cuts...plus they tend to have
more deductions. Second, even the second table only looks
at the annual deficit, not the actual debt.
As the debt increases, its interest increases (and the interest rate
tends to increase as well). So the future
"deficit tax" is some 30x the current "deficit tax" calculated for that
Back to Bartcop.com
to Bart | Discuss
it on The BartCop Forum | Comment
on it at the BartBlog