We should talk about taxes. The LA Times, like many news organizations, has interesting article entitled
Taxes Flatten but Deep Pockets Still Bulge.
The thesis is that taxes have been flattened so extensively under Bush, that we have a de facto flat-tax.
Their infobox is pretty stunning (table adapted from the article).
The average percentage of their income that people paid in combined federal income and payroll taxes in 2005: What people actually paid (In thousands of 2005 dollars)
Income | Net tax rate |
|---|
Less than $10 | 2.3% |
$10-20 | 3.7% |
$20-30 | 9.1% |
$30-40 | 13.6% |
$40-50 | 15.8% |
$50-75 | 17.4% |
$75-100 | 18.9% |
$100-200 | 20.6% |
$200-500 | 21.5% |
$500-1000 | 22.0% |
over $1000 | 22.0% |
That must be why a majority of Americans, when polled, feel there is inequality in the tax code. Either that or because Cheney got a 1.8 million dollar refund or the regressive nature of social security and medicare payroll taxes.
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