Alexandria Ocasio-Cortex (AOC) has announced a proposal for a tax plan with a top rate of 70% on anything over $10 million.
She is nicer than I am.
In my research I found less than 20% of households in America break across the $100,000 mark. HOUSEHOLDS – not individuals. So for better than 80% of people an increase in taxes on over $100k (much less $1M or $10M) – DOES NOT IMPACT THEM AT ALL.
I can’t express how confusing I find it that so many people who I am sure are NOT in that top 20% are upset when the taxes are raised on them. The only explanation that makes any sense to me is that there is something in their brain saying this:
As much as I hope that someday I too am one of those rich people, I also hope to retain enough empathy and compassion to not rankle at paying my fair share in taxes. I benefit from an educated population. I benefit from police officers who do not need “side gigs” to survive. I benefit from good roads. I benefit from the EPA, FDA, NASA, CIA, ATCs, etc. who all need paychecks to pay rent and eat.
I think part of the problem comes with people also not understanding how taxes get calculated. It isn’t that the rich people are going to get taxed at 70% of everything – just everything OVER $10M.
In 2018, a “head of household” taxes options looked like this:
|Taxable Income||Tax Rate|
|$0 – $13,600||10% of taxable income|
|$13,601 – $51,800||$1,360 plus 12% of the amount over $13,600|
|$51,801 – $82,500||$5,944 plus 22% of the amount over $51,800|
|$82,501 – $157,500||$12,698 plus 24% of the amount over $82,500|
|$157,501 – $200,000||$30,698 plus 32% of the amount over $157,500|
|$200,001 – $500,000||$44,298 plus 35% of the amount over $200,000|
|$500,001 or more||$149,298 plus 37% of the amount over $500,000|
So everything up to $13,600 – you keep 90%. $13,601 -$51,800 you keep 88%.
$51,801 – $82,500 you KEEP 78%. Etc. Ok, and that number about $1,360 (that’s 10%) and $5,944 ($1,360+the 12% for $13,601-$51,800) – they TELL you what you’ll be “locked for” in previous brackets. So if your TOP bracket is the tippy-top, you know you’ll pay $149,298+37% of everything over $500,000. You KNOW you brought home at least $350,702.00. I’m sorry, you couldn’t live on more than a quarter-million in the year? That’s your failure.
So do I support AOC’s plan? Hell yes. The top 1%-10% can figure out how to live on a little less. 80% of people live on less than $100,000.