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I guess that is the big difference in thought, between "sock it to the rich guy," and "hey, I am now the rich guy, and I earned every cent of it."

Most of the regulars here know my responses well enough to know I'm being facetious in pronouncing the need to 'sock it to em'. I definitely don't have near the wealth of those names I mentioned, but we do fine with more invested savings than our skilled labor parents could ever have imagined. I am sympathetic to those who have worked hard to earn what they have, even though they pay the lion's share of tax revenues.

The fact is those who report adjusted gross income (AGIs) of $100,000 and less represent about 74% of the households that pay Fed income tax, but pay only 18% of the total tax revenues collected, per the IRS Statistics of Income for 2018. If you go to the other end of the spectrum, those who report more than $500,000 of AGI make up 1.5% of the total returns that paid tax, but paid just under 40% of all tax revenues. The problem with 'stickin-it-to-em', is there aren't very many of them...for 2018, 1,575,233 returns had AGIs > $500,000 and only about 38% of the AGI amount for this group came from salaries, meaning most of the income came from investments. Increasing this groups tax rate will simply drive their invested dollars into non-productive shelters, to include charitable trusts, complex insurance products and overseas. Realistically, the only way to increase tax revenues is to raise tax on moderate income households....not politically wise.

If you're handy with Excel you can download these spreadsheets and have hours of fun figuring out where income comes from and who paid what and how much.

https://www.irs.gov/statistics/soi-tax-stats-individual-inco...

BruceM
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