Harley Davidson shutting down US factory, moving jobs to Bangkok ................

[ThatOwlWoman]

No, it doesn't. Regardless of filing status, they still fall into a certain income bracket. the bottom 47% don't pay that.

What should be done in my opinion:

1) Raise capital gains tax rates to the same as ordinary income rates and eliminate interest carry provisions.
2) Create donut hole on SS taxation. Tax it up to the $128k, then reinstate a 2% SS tax on any income above $500k. That would resolve SS issues.
3) Raise standard deduction to $30k per adult, then eliminate the bulk of deductions and loopholes used in the current tax code by the wealthy.

To be clear, the above doesn't really alter the situations of the lower income as they don't currently pay Federal income taxes, but it would help the middle income families and force more taxation on the wealthy.

I like these ideas. Can you explain though your reasoning for the FICA "donut hole"? And why I now suddenly want a donut?

 

[Superfreak]

I like these ideas. Can you explain though your reasoning for the FICA "donut hole"? And why I now suddenly want a donut?

The main reason is that anything above the current $128k would be a tax increase. Thus, trying to stick to increasing it on just those that have more substantial incomes that put them in top 1% of earners. Just a way to balance the scale a little bit, but also shore up SS.

 

[cawacko]

The main reason is that anything above the current $128k would be a tax increase. Thus, trying to stick to increasing it on just those that have more substantial incomes that put them in top 1% of earners. Just a way to balance the scale a little bit, but also shore up SS.

Still a tax increase though. I think your proposal is strictly jealousy at the high earners in Cali, specifically USC alum, because we would be the ones hit.