But surely this is a complete non-sequitur. The solution is to count a dollar as a dollar no matter what its source and just add the gain into total income and tax according to the tax bracket of the filer within a progressive system.
To argue from this to a flat tax is absurd.
Cheers, Ken Hanly
Chwe --- Doug Henwood <dhenwood at panix.com> wrote:
>
> On Nov 16, 2007, at 1:05 PM, Robert Wrubel wrote:
>
> > As I understand it, we already have a regressive
> tax
> > system (you and I paying 35% while capital gains
> are
> > only taxed at 15%.) A flat tax could be an
> improvement
> > on that.
>
> That's what flat-tax advocates want you to believe,
> but it's not
> true. The federal tax system is still progressive,
> despite all the
> reforms over the years.
>
>
<http://cbo.gov/ftpdocs/77xx/doc7718/EffectiveTaxRates.pdf>
>
> effective tax rates,
> all federal taxes, 2004
>
> poorest 20% 4.5%
> next 20% 10.0
> middle 20% 13.9
> next 20% 17.2
> richest 20% 25.1
>
> top 10% 26.9
> top 5% 28.5
> top 1% 31.1
>
> "Effective" means what people actually pay, not
> what's on the books.
>
> Doug
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