> All it takes is tax on the extremely wealthy and lessening taxes on the middle class… seems obvious right?

You could tax 100% of all of the top 1%'s income (not progressively, just a flat 100% tax) and it'd cover less than double the federal government's budget deficit in the US. There would be just enough left over to pay for making the covid 19 ACA subsidies permanent and a few other pet projects.

Of course, you can't actually tax 100% of their income. In fact, you'd need higher taxes on the top 10% than anywhere else in the West to cover the deficit, significantly expand social programs to have an impact, and lower taxes on the middle class.

It should be pointed out that Australia has higher taxes on their middle class than the US does. It tops out at 45% (plus 2% for medicare) for anyone at $190k or above.

If you live in New York City, and you're in the top 1% of income earners (taking cash salary rather than equity options) you're looking at a federal tax rate of 37%, a state tax rate of 10.9%, and a city income tax rate of 3.876% for a total of 51.77%. Some other states have similarly high tax brackets, others are less, and others yet use other schemes like no income tax but higher sales and property taxes.

Not quite so obvious when you look closer at it.

The point isn't to just cover the tax bill, it's that by shifting the burden up the class ladder, there is more capital available to the classes that spend and circulate their money in the economy rather than merely accumulate it

What are you responding to?

How much of the current burden is shouldered by the middle class? How much by the 1%? How does that compare to other Western nations? What measurable effect would raising this on the 1% be? What about the middle class?

Paper income tax rates are completely and utterly meaningless. Bringing them up is just muddying the waters. Effective rates on total income (including from capital, wealth taxes etc.), post-loopholes, are the only thing that matters.

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