04-15-2016, 12:08 PM
The problem I have with our current tax structure is that the top bracket is less than half a million. So we divide all the people making less than $400 thousand into 4 different brackets, but then just have one bracket for everyone making between half a million and $100 million.
This will sound a little strange to some of you, but a person with a few kids making $400K a year ($300K after taxes) can burn through it pretty quick. Sending 3 kids to top private colleges could easily burn a million dollars. Now I am NOT saying that people making $400K a year are struggling in any way. They can easily live in comfort on that much money. All I am saying is that a family like that would notice the difference of a few thousand dollars a year in taxes. But when you are making ten times that amount ($4 million year) a few thousand dollars is almost meaningless.
If we are going to raise taxes then it should only be on people making more than $3 million a year or something like that. And remember that any higher tax bracket rate only applies to the income above that bracket. So a guy making $3 million a year would still pay at the lowest rate on the first $25K he earns just like all the rest of us.
This will sound a little strange to some of you, but a person with a few kids making $400K a year ($300K after taxes) can burn through it pretty quick. Sending 3 kids to top private colleges could easily burn a million dollars. Now I am NOT saying that people making $400K a year are struggling in any way. They can easily live in comfort on that much money. All I am saying is that a family like that would notice the difference of a few thousand dollars a year in taxes. But when you are making ten times that amount ($4 million year) a few thousand dollars is almost meaningless.
If we are going to raise taxes then it should only be on people making more than $3 million a year or something like that. And remember that any higher tax bracket rate only applies to the income above that bracket. So a guy making $3 million a year would still pay at the lowest rate on the first $25K he earns just like all the rest of us.
