Doubtful. One way to drive your tax rate down is to not have W-2 income but realize capital gains since the tax rate is typically lower than W-2 income. For example, Elon Musk typically has no tax liability since he has no W-2 income. However, when he does sell stock he does pay a lot of tax - $11 billion is 2021. Max capital gains rate is 20% (can be up to 28% for some assets). Regardless, the upper 10% basically pay the vast majority of the taxes. Look it up or read post #123.
Quote:
Originally Posted by OrangeBlossomBaby
10% is fine too. Make all the uber wealthy - that other 10% of taxpayers, take the standard deduction, and pay 10%. IMO, we would be better off with a consumption tax - you buy stuff, you pay tax, with some provision to reduce the regressive nature.
Good luck convincing anyone to pass THAT through senate and congress though. The top 5% of wealth in this country itemize enough that their tax obligation is much less than 10%, and some of them pay nothing at all in taxes.
So sure - bring it on. 10% tax, with standard deduction ONLY, no more itemizing at all, for everyone.
|