(Image is from an excellent post of taxes for the rich at Think Progress.)The rich and their Republican lackeys are still complaining that the top tax rate is too high, even though after the Bush tax cuts for the rich were repealed, that top rate remains below 40%. That's 50 points lower than the top tax rate was in the 1950's, when it was 90% (and the economy was booming).
But the truth is that while the top tax rate is slightly below 40%, none of the super rich pay anywhere near that. They pay an average real tax rate of slightly over 17% -- less than half of the top tax rate, and only 3 points above the average rate paid by the middle 50% of Americans.
How can they get away with that? The primary reason is because they don't pay the earned income tax rate like working Americans. They have a special capital gains tax rate of 20% (because they make their money by gambling on (manipulating?) the stock market. Then they have a range of loopholes and deductions to lower the rate below that 20%.
Folks, this just ain't right. Income is income, no matter how it is earned -- and it should all be taxed in the same way (at the earned income tax rate). It's time to do away with the special capital gains tax rate for the rich -- and force them to pay their fair share of taxes. That rates destroys the progressively of our income taxes.
