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Politics : Politics for Pros- moderated
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To: Elroy who wrote (366119)5/26/2010 12:00:44 PM
From: TimF   of 793897
 
Yes typically the total effective rate is lower than 40%, only the marginal rate of federal income tax would be 40% (and not 40% yet, but after an increase that the blogger was opposing, and I also oppose).

But marginal rates that high are still a bad idea.

And many people don't have kids, own a house etc. Giving targeted deductions is the wrong way to go, lower rates are a better idea. Get rid of all, or at least most of the deductions and credits and just lower the rates.

And consider that federal income tax is not the only tax. People pay other federal taxes, the biggest of which for most people is the payroll tax (and I'd count the "employer contribution as well, since self-employed people pay it directly, and those employed by others get lower compensation because of it), but there are many others, than you have state and local taxes (such as the property tax on that house that gets you the mortgage interest deduction).

Some people would indeed pay 40%, esp. after tax rates are increased.
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