I understand progressive taxing but 75% seems a bit on the high side.
If my gov. started hitting me for that amount I'd be gone.
The beauty of the U.S. is that you are free to leave for whatever low-tax paradise you like, at any time, and you can take all the money and toys you can carry. I usually recommend Somalia (0% tax!). Good luck, and I hope you aren't hunted as food. Sincerely.
During the Golden Age when Eisenhower was president, the top marginal tax rate was 90%. We built the interstate highway system, and banked enough to send men to the moon in the next decade.
Most people have no idea what the marginal tax rate means. They think that if it's 37%, that the richest people pay 37% of their incomes in U.S. income taxes, but
no. They pay 0% on the first $7000, 8.3% on the next $12,800, 11.2% on the next $38,900, 15.4% on the next $61,200...
just like everyone else, until they get
way above $250,000, where it starts getting taxed at more like 37%. The
effective tax rate (what an individual ACTUALLY pays after deductions and loopholes) is always ignored in such discussions. ALWAYS.
Unless you don't
work for a living, and get all your money off investments, like Mitt Rmoney. He pays less than 15%, 'cause that is "capital gains." Rich people get to pay less, 'cause they can hire people to write the tax laws that say "rich people create jobs, and deserve to pay less in taxes."
So, please, John Galts -- go to Somalia. Don't come back. We don't need you.
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