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The biggest point is that unless we up the rate on the wealthy now they will pay much more later......we need to get on with raising their taxes.....and lowering our's.....

...The effective rate on the wealthy, upper middle class and middle class from what I have seen is 20% on average for each class. When the deductions, loopholes and capital gains are all counted up and figured for each group that is what we get, a 20% average....


Hi Dave!

My response had nothing to do with the merits or demerits of a potential tax hike on the "rich" or anyone else; rather it was in response to your citing a 92% top rate under Truman in a prior post.


My point was that the top rate doesn't really matter--what matters is the effective tax rate


Here are the top Federal tax rates by year:

http://www.ntu.org/tax-basics/history-of-federal-individual-...

You will note that that from 1979 to 2007, the top rate ranged from a high of 70% in 1979 to a low of 28% in 1988.


Yet, the effective tax rates actually paid for the top 10% during that same period varied in a much narrower range: from 30.1% in 1996 to a low of 24.3% in 1986.

http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Doc...


Hope that helps explain my point.

As to your statement about the rate being about 20% for the "wealthy, upper middle class and middle class"....well, I sure don't see it in the charts. Perhaps you mean total taxes, including Federal, state Social Security, Medicare, sales, excise, etc?

Cheers!
Murph
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