(02-13-2019 09:25 PM)q5sys Wrote:  

(02-13-2019 09:12 PM)banker Wrote:  

(02-13-2019 08:33 PM)q5sys Wrote:  The thing that failed to get mentioned is that in order to implement this... you end up raising EVERYONES taxes as well.
This is pretty easy to see if someone simply takes the time to look at the numbers.

Lets say current tax is 40% for anything over 500K.

Income 1,000,000 + 40% tax rate = Net of $600,000.
Income of 900,000 + 40% tax rate = Net of $540,000
Income of 800,000 + 40% tax rate = Net of $480,000
Income of 700,000 + 40% tax rate = Net of $420,000
Income of 600,000 + 40% tax rate = Net of $360,000
Income of 500,000 + 40% tax rate = Net of $300,000

Ok, now lets say they impose a new 70% tax rate on everyone over $1,000,000...
Income 1,000,000 = 70% tax rate = Net of 300,000
But look at the above numbers. No one in their right mind will accept going from 900,000 to 1,000,000, because that means they lose $240,000 a year.

The only way this works is if you raise EVERYONES taxes at a steady rate so that at no point does making extra money hurt you. So taxes also has to rise on every brakcet of $100,000 in the list above.

And that cascades ALL the way down to the middle class.
So in the end, the middle class will end up paying more because if their taxes dont go up by some amount... there will always be a point where making more money = not making any extra money to compensate for the extra responsibilities and effort that raise requires... or a loss of income after a raise due to taxes.

So its either
'Here's a promotion: work harder for more money you cant have.'
or
'Here's a promotion: work harder and also end up with less than you had before.'

That's not how it works. Right now the top tax bracket is 37%. That kicks in on earnings over $500,000. So if you make $2,000,000 you pay $150,000 (the tax on the first $500,000 based on the tax tables) plus 37% of the $1.5 million remainder. So $755,000 total. If they add another bracket for 70% over a million, you would pay $150,000 + $185,000 (37% of $500,000) + $700,000 (70% of a million), or $1,035,000 total.

Your take home would be reduced from $1,245,000 to $965,000.

That is not how it has been explained to me. If that's the way this is supposed to be implemented... fine... but then it needs to be presented as such.

This has been not been worded as "a 70% tax on earnings above $1 million"
It has been worded as "a 70% tax on anyone earning $1 million".

Those are two very different statements.

There's an assumption there that Progressive Democrats understand math and taxes.