[wader-dad]

"In 1980, when the top income tax rate was 70%, the richest 1% paid only 19% of all income taxes; now, with a top rate of 35%, they pay more than double that share. With lower rates and fewer tax loopholes after the 1986 reform, there is less incentive to shelter income to avoid tax." Quote

As a kind of a tax attorney- this "double their share" is because there a just a whole boat load of incredibly wealthy rich people out there. It is a totally meaningless statistic. The top 1% own more wealth than the bottom 95% combined. Not since the turn of the century have the rich been this rich. The rich are not being overburdened with taxes, they are paying the lowest taxes in history by far and they know it. They don't have to shelter income because the rates are so low.

These people are thrilled to pay income tax at the top rate of 35% and their dividends are taxed at only 15%. The wealthy know that their taxes are absurdly low from a historical perspective. Since the Bush tax breaks were enacted, it is estimated that those making more than $375,000 received tax reductions of $500 billion dollars. The 35% bracket does not kick in until your income is over $357,500. If the top rate is increased to 37% over $250,000 of income, A guy with $500,000 of income would pay around $7,500 more in taxes. Most clients I speak with would gladly do it if it meant reducing the deficit that is projected to be 1 trillion dollars just for the year ending September 30 2009.

But "if the rich had to pay more in taxes over $250,000, they would lay off many workers in their factories." "Why would rich people work hard if they had to pay more taxes." It is beyond belief that those words are spoken by humans.

Wealthy people know that they never had it so good. They know the bargain rates (especially the dividends tax which is unprecedented) have to end sometime. 37% or 38% is still lower than a 5 ounce bucktail with no heave.