Sandy Clark, CGCS said: 4% may make 200K but what about working husbands and wives in bigger cities where the cost of living is much higher than most of the country. That 4% more than likely only counts individuals. It is not uncommon for two people to combine to make 200K and in those high tax locations, they are comfortable but certainly not rich. I think it is ridiculous to think they are somehow not deserving to make that kind of money no matter how hard they work and have people insist they should pay even more tax. Wouldn't you think those that save smartly should be looked at as a positive thing since they won't be a burden on society?
Sandy, I agree about those that can save smartly, but aren't there many savings vehicles that can be used to avoid paying taxes on incomes?
I also agree with your statement about 200,000 might just be comfortable say in a metropolitan area or heck it might not be middle income in some areas of Long Island and other places like that, especially when they are paying higher state and local taxes? But can they not deduct those taxes from their federal taxes? I guess when we start looking at all other factors we can understand somewhat how the tax codes got the way they are. But that doesn't change what our/the government's obligations are. And those obligations should certainly be up for debate.
Your statement about insisting on those making that money paying more taxes not being fair should be more defined, most making that money are taking advantage of every available tax incentive that they can, so what is the real percentage of tax are they paying? Is 35% too much? It probably is, until you see what they are actually paying, how about making it 10% for everyone, no deductions? Well those making minimum wage would really be affected by that, but if we run the numbers and it seems as fair as possible, why not do that? But to continue to fight that one side is right and the other is not, will not get to any solutions that are needed. Just my opinion.
Mel