The Fraudulent Flat Tax Pitch – A Rich and Powerful Tactic

Power and riches go together. But nowadays, they need political spin. Throughout history the very rich have usually also been the very powerful.  And usually the very rich use that power to both protect themselves from the less well-off and to figure out ways to further enrich themselves.  Often the enrichment comes at the expense … Continue reading The Fraudulent Flat Tax Pitch – A Rich and Powerful Tactic

Millionaires Don’t Move to Avoid Taxes – Empty Threats

I've commented on this before, but it's worth repeating.  Millionaires, despite all their bluster and threats to move when taxes are raised, simply don't move.  It's empty threats.  If income tax rates are raised on millionaires, they actually stay put.  This means it is indeed possible to improve state government finances by using a very … Continue reading Millionaires Don’t Move to Avoid Taxes – Empty Threats

I Don’t Think Corporate Taxes Are Too Low

Ok, just a quickie about taxes with two more startling graphs.  Another proposal that's making the rounds in Washington is to cut the corporate income tax rate.  This proposal is originally coming from the Republicans, but it looks like Obama has drunk the kool-aid too.  The argument goes that corporations in the U.S. are taxed … Continue reading I Don’t Think Corporate Taxes Are Too Low

Tax Rates Are Historically Low

The  Difference Between Average and Marginal Taxes U.S. average tax rates are at historical lows.  Yes, that's right. Our taxes aren't "high", despite the Tea Party's claim that we are "taxed enough already".  The average family pays approximately 5% of gross income as U.S federal income tax. How can that be you ask?  Well, the … Continue reading Tax Rates Are Historically Low

Taxes and Unshared Sacrifice

It's tax time so it's appropriate to look at the fairness of the tax code.  One of the greatest beneficiaries of the Bush-era tax cuts were hedge fund managers.  Hedge fund managers are people on Wall Street who manage other people's money, not primarily their own.  In return, they get paid fees for managing the … Continue reading Taxes and Unshared Sacrifice