There's no simple answer to the not-so-"simple" question posed.

I think a big part of the problem is what the politicians are calling "Rich".

They continue to denigrate and condemn people making $250,000, as if they were living the same lifestyle and paying the same (lower) federal tax rates as Donald Trump, Warren Buffet, Bill Gates, Oprah Winfrey, or the many U.S. Senators and Congressmen who are multi-millionaires.

The problem is, many, many small business owners are in that $250k range with their business income reported on their personal returns.

"S Corporation Income

In general, an S corporation does not pay tax on its income. Instead, the income, losses, deductions, and credits of the corporation are passed through to the shareholders based on each shareholder's pro rata share. You must report your share of these items on your return. "
http://www.irs.gov/businesses/small/...117613,00.html

The above is why people are interested in Cain's and Perry's Flat Tax Plans. (Perry's notably has personal, mortgage and charitable deductions for people under $500,000.....not $250,000).