AP POLL: How to pay for health overhaul? Tax the rich

[Scipio]

Doesn't the US have really low taxes on the rich right now?

We have really low taxes on pretty much everybody right now.

Except in places like MS, where we have a very regressive sales tax.

[crazy canuck]

Isnt payroll tax the same thing as income tax - its just a prepayment on income tax isnt it.  If so, all Hans is saying is that a certain percentage dont have to pay anything more then what they have already paid at the end of the tax year.

You're thinking of withholding.  As Fredo said payroll taxes are the dedicated taxes for Social Security and Medicare/Medicaid.

Ah, ok.

[Barrister]

Here is the link for everyone else.  Alberta has a flat 10% tax...

http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html

The chart for Manitoba:

10.8% on the first $31,000 of taxable income, +
12.75% on the next $36,000, +
17.4% on the amount over $67,000

Now I remember why I left the damn place...

[DGuller]

Actually the US only taxes the rich.  The bottom 47% pay no taxes at all.  Since income for the rich tends to be highly volatile, so is our tax system.

I've read that statistic before.  It's absolutely ridiculous.

I've read similar numbers for Germany.

The 10% highest income earners pay more than 50%.

The 25% highest income earners pay more than 80%.

The 50% lowest income earners pay 4.3%.

I hate these types of statistics.  In US they're mostly used to make a point about how heavily taxed the rich are, even by "reputable" papers such as WSJ.  The problem is that these numbers by themselves actually say nothing about the progressivity of the tax system, it's a mathematical fact even before you consider the complications such as taxes other than federal income tax.  They do however make for a very dramatic reading.

[Sheilbh]

I've read similar numbers for Germany.

That's fine though.  What I have problems with is what the situation was in Ireland (I believe they're changing tack now) and possibly the US in which the personal allowance is so high that it effectively removes a large proportion of people from paying tax at all.

[crazy canuck]

I've read similar numbers for Germany.

That's fine though.  What I have problems with is what the situation was in Ireland (I believe they're changing tack now) and possibly the US in which the personal allowance is so high that it effectively removes a large proportion of people from paying tax at all.

What is the problem with that?

[Sheilbh]

Now I remember why I left the damn place...

The UK has these numbers on top of your personal allowance of £6,475:

0 - £2,440 (savings only)     10 per cent (starting rate for savings)
0 - £37,400    20 per cent (basic rate)
Over £37,400    40 per cent (higher rate)

[Barrister]

I've read similar numbers for Germany.

That's fine though.  What I have problems with is what the situation was in Ireland (I believe they're changing tack now) and possibly the US in which the personal allowance is so high that it effectively removes a large proportion of people from paying tax at all.

What is the problem with that?

The 'problem' I've heard is that when you remove a significant number of people from paying any taxes whatsoever it encourages an "us against them" mentality, as opposed to "we're all in this together, paying our fair share".

[Sheilbh]

What is the problem with that?

I don't think the cost of society should fall on a narrow section.  Though I think our personal allowance is too small.

[garbon]

We have really low taxes on pretty much everybody right now.

Except in places like MS, where we have a very regressive sales tax.

Sales tax is not good here. It's 9.5 in SF proper. Over 10 in some cities. I believe Chicago is over 10 as well.

[crazy canuck]

Now I remember why I left the damn place...

The UK has these numbers on top of your personal allowance of £6,475:

0 - £2,440 (savings only)     10 per cent (starting rate for savings)
0 - £37,400    20 per cent (basic rate)
Over £37,400    40 per cent (higher rate)

The 40% has to be taken as the combination of our combined Federal and Provincial rates.  You are still paying less then some poor sod in Manitoba.

edit: and you are paying less then me!

[Ed Anger]

I believe Chicago is over 10 as well.

10 and half I think.

[Zanza]

Here is our federal income tax progression. We don't have state income taxes. It's actually not really brackets, but rather a formula that changes once you hit the next bracket. And it jumps to 45% for income over 250k Euro.


EDIT: blue is marginal, green is average.

[Scipio]

We have really low taxes on pretty much everybody right now.

Except in places like MS, where we have a very regressive sales tax.

Sales tax is not good here. It's 9.5 in SF proper. Over 10 in some cities. I believe Chicago is over 10 as well.

Most of those exempt groceries.  Not MS.

[crazy canuck]

The 'problem' I've heard is that when you remove a significant number of people from paying any taxes whatsoever it encourages an "us against them" mentality, as opposed to "we're all in this together, paying our fair share".

I dont understand that.  Increasing the basic exemption lowers my tax bill also.