Last Friday, former President Clinton said: "I think the people that benefit most should pay most. That's always been my position -- not for class warfare reasons; for reasons of fairness in rebuilding the middle class in America."
Readers can see for themselves how much more taxes higher income individuals pay using TurboTax here. Suppose that you have two married couples with two children and no other deductions. The only difference between these two couples is that one makes $60,000 per year and the other makes five times more, $300,000. Should people who earn 5 times more money pay 5 times more taxes? How about 49 times more in taxes?
How about going from $100,000 to $300,000, a three fold increase in income? Increasing income 3 times, increases the tax burden by 9 times (going from $8,069 to $71,134).
Even lower income earners actually get money back from the government. At $40,000, the couple will get $2,500 net back from the government, and this increases for lower income earners. Even at $50,000 the couple would get some money back.
Readers can see for themselves how much more taxes higher income individuals pay using TurboTax here. Suppose that you have two married couples with two children and no other deductions. The only difference between these two couples is that one makes $60,000 per year and the other makes five times more, $300,000. Should people who earn 5 times more money pay 5 times more taxes? How about 49 times more in taxes?
How about going from $100,000 to $300,000, a three fold increase in income? Increasing income 3 times, increases the tax burden by 9 times (going from $8,069 to $71,134).
Even lower income earners actually get money back from the government. At $40,000, the couple will get $2,500 net back from the government, and this increases for lower income earners. Even at $50,000 the couple would get some money back.
Is the tax system fair?
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Oleh
abudzar
