![]() ![]() None of this could surprise people who are experienced in the ways of tax policy, such as Rep. Those returns accounted for less than 0.05% of the total filed, and on average reported taxable income of $25.2 million. How many people are we talking about? According to the IRS, for the 2016 tax year, the most recent full year reported, out of the 150.3 million returns filed, only 16,087 reported income of more than $10 million. If that bracket were added to today’s brackets, a taxpayer with income of, say, $11 million would have an overall tax rate not of 70%, but about 39.5%. She wasn’t talking about taxing all income of a $10-million earner at 70%, just the amount over $10 million. Ocasio-Cortez proposed to add a new bracket for income over $10 million, and tax everything over that ceiling at 70%. In other words, no one earning $612,351 or more is taxed at 37% - they’re taxed at a combination of all those lower rates - the blended rate, for someone just hitting the top bracket, would be about 26.7%. In 2019, married taxpayers filing jointly will pay 10% of their first $19,400 in adjusted gross income (after certain exemptions and deductions), 12% of the next $59,550, 22% of the next $89,450, and four higher percentages on four further chunks of income up to the maximum of 37% on all income of $612,351 or more. We know of these chunks of income as “tax brackets.” Taxpayers pay a given tax rate on income up to a certain level, then a higher rate on the next swath of income, a higher rate on income above that, and so on, until they reach the top rate on all remaining income up to infinity. That requires first understanding marginal tax rates, on which the federal income tax is structured. ![]() Republicans: Let Americans keep more of their own hard-earned moneyĭemocrats: Take away 70% of your income and give it to leftist fantasy programs - Steve Scalise January 5, 2019 ![]()
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