[quote briansd1]
That’s true. That’s a why a simple system with a substantially higher marginal tax rates for the high earners is a progressive system.
[/quote]
Shouldn’t be ‘punitive’, but there is an ‘economy of scale’ relative to disposable income. The more you make, the less is allocated to basic living expenses, emphasis on ‘basic’.
I have no problem with adding in another bracket.. ie a 30 to 35% bracket on very high earners on the fed form.. I would need to dig through the bracket to locate a good #.. but it would probably be over $2Mil/yr. The % should not be higher than the corporate tax rate (35%) because it would push people to ‘game the system’.
With CA state.. probably something around 11%.. on a very high income… again watching out for state corporate tax rates. http://www.ftb.ca.gov/businesses/faq/717.shtml
I gotta look into S-corporations.. 8-P
Taking all the above into consideration though, I do think that the gov has to watch out for abuse of its citizenry through taxes.
