Unfortunately, Jeffrey, WordPress makes it difficult to find a specific letter, because instead of the date, it says something like “19 days ago.” If you think it important enough, give me specific opening words and I’ll try to focus in on the correct email.
Arlen Grossman, I cannot recall what post I made the comment on. There was one post that had 2 sentences, 1 advocating a flat tax of 15%, the other a flat rate of 17%. The 15% part was the correct one. The 17% was in error.
I just realized a mistake in my March 23rd comment. One sentence had 17% where I meant to put 15%. So the contradiction was unintentional.
Well, Jeffrey, you have it on record here. For me to locate it would probably take too much time.
Arlen Grossman, that being the case, don’t give it too much thought. What I had meant at the time was having a flat tax at 15%. Capital Gains would be taxed between 15%-25%.
I hear you.
Arlen Grossman, varying the rate on Capital Gains would not discourage investment in my opinion. It just depends on how long it is held.
Those are reasonable suggestions, although I would tax the very wealthy at a higher rate.
Arlen Grossman, if you were to have a sliding scale from the standpoint of Capital Gains taxation, what rates would you choose for short term and long term Capital Gains? I would vary the rates based on how long they are held, however, I would keep the rates reasonable in order to encourage investment.
Sorry, Jeffrey, I haven’t given that enough thought to suggest rates. But in general, income inequality is such that I’d like the rich to pay progressively more to better level the playing field.
Arlen Grossman, in a sense that is what my idea does. The marginal rate, with very limited deductions, would be a simple flat tax of 15%. Capital Gains would be taxed between 15% and 25%. The longer the gain is held, the lower the tax rate. The shorter length of time sees the gain taxed at the higher rate. The top marginal tax rate would be 15%. You would be able to deduct childcare expenses, home mortgage interest, business purchases, educational expenses and charitable contributions. There would be no deductibility for state or local taxes. However, since everyone would get more take home pay, that makes up the difference to compensate for the loss of some degree of tax deductible expenditures. You and I have a differing idea about how to tax the wealthy. My idea still ensures that wealthy people will pay the lion’s share of the nation’s tax burden. Even with a flat marginal tax rate, you still technically pay nothing below a certain income threshold. An example: if you earn $50, 000.00 a year or less, you pay nothing. Not even payroll taxes, which is a big advantage for low income families. If you earn $57, 000.00 a year or more, you pay 15%.
You’ve obviously given this a lot of thought, Jeffrey, and your ideas basically sound reasonable to me. However, I would like to see the top marginal tax rate higher.
Nobody really pays the 90% because of all of the tax deductions. A fairer system would be a simple flat tax or a consumption tax. If we have a flat tax, unless you don’t make enough to pay federal income tax, I would advocate a simple flat tax of 15%. Capital Gains would be taxed on a sliding scale. Short term capital gains would be subject to a flat rate of 15%. Long term capital gains would be taxed at 25%.
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