Monday, April 17, 2006

The more you make, the more you save

The L.A. Times has a great story this tax day, "Taxes Flatten but Deep Pockets Still Buldge". The Times says that while the much-fabled "Flat Tax" has not been enacted, the Bush administration's tax policy has achieved much the same thing.
As a result, people with income between $500,000 and $1 million owed the same share of their income in combined federal income and payroll taxes — 22% — as did taxpayers reporting at least $1 million in income, according to the Tax Policy Center.

Taxpayers in the $100,000 to $200,000 range paid nearly the same rate, 20.6%. Those in the $50,000 to $75,000 range paid 17.4%; taxpayers in the $40,000 to $50,000 range paid 15.8%; and those in the $30,000 to $40,000 range paid 13.6%.

Advocates of the flat tax have long argued that it would stimulate economic activity, ultimately benefiting everyone. Bush shares that view, though he has not officially advocated a flat tax.
It is not exactly flat, but it is closer to the proposed %17 flat tax proposed by former Presidential Candidate Steve Forbes.

- Murphy

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