Big Gain for Rich Seen in Tax Cuts for Investments
By DAVID CAY JOHNSTON
Published: April 5, 2006
¶Americans with annual incomes of $1 million or more, about one-tenth of 1 percent all taxpayers, reaped 43 percent of all the savings on investment taxes in 2003. The savings for these taxpayers averaged about $41,400 each. By comparison, these same Americans received less than 10 percent of the savings from the other Bush tax cuts, which applied primarily to wages, though that share is expected to grow in coming years.
The Times, which also did its own analysis, asked the group to use the model to produce additional data on the effect of the investment tax cuts on various income groups. The analyses show that more than 70 percent of the tax savings on investment income went to the top 2 percent, about 2.6 million taxpayers.
The entire Scenario denies the fact that Equality demands Equal Opprotunity, and for the Later, there must be some eventual redistribuation of Income. This Author would perfer it to be conducted with sharp Inheritance taxation, so that economic activity be least effected. Any Income Tax, should at least possess some redistributive property, if it does exist; this Author advocates a Bank Deposit tax of 2% per year, and assessed at time of Deposit with Certificates of Demand again assessed every year thereafter at anniversery of deposit.
Retention of the Income Tax should bring alteration of Collection plus provision of some guarantee of redistribution of Income. I therefore propose Income should be split into twelve brackets, the first bracket assessed in January, and the next lowest assessed every month thereafter. Provision should state no Taxpayer in a higher Tax bracket can pay less than any Taxpayer in a lower Tax bracket. This will somewhat cancel lobbyied legal evasion of Taxes. Corporation shall pay more in Tax than the highest Tax-paying Personal Taxpayer, unless their Income was less than the highest earning Personal Taxpayers at which time they will pay the highest of any Personal Taxpayer in their Tax bracket. lgl