Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Instead we find ourselves somehow considering the idea that a 37% top individual tax rate is usurious.


The historical top rates were subject to a lot more deductions than we have today - effective tax rates were in the 40% range. Effective rates today are certainly lower, so your point stands, but the difference isn't as stark as just looking at marginal rates would presume.


People tithe 10% to God. Taxing 37% of income is usurious taxation.

You would be sorely mistaken if you believed that people paid 94% of their income as taxation. The tax code is entirely different today from then.


> You would be sorely mistaken if you believed that people paid 94% of their income as taxation

Yes, because that's a marginal rate, not a effective rate. There's a big difference between the two, that many people are quick to gloss over.


> Yes, because that's a marginal rate, not a effective rate. There's a big difference between the two, that many people are quick to gloss over.

Oftentimes, that happens when it is desired for some people to pay more than they currently are. The entire tax code has changed, though.


I'd love to see examples of people who advocate raising tax rates glossing over marginal and effective rates. It would actually be to their advantage if more people understood the difference. The number of people who turn down raises because "My taxes will go up" is depressingly high (Any number > 0 is too damn high. You'd have to be deeply misinformed to turn down a raise because of taxes). Those are the same people likely to vote down higher tax rates on higher incomes.

On the other hand if you support lower tax rates, it's to your advantage for voters to be misinformed about this. The more people who think their taxes are going up, even though they aren't, the more people are likely to vote against raising the top tax brackets.


Ah, yes. That is true! What I had meant is that certain discussions can come up, such as, "that group needs to pay their fair share." Regardless of whether the group should pay more or not, the discussion is oftentimes not about tax rates as much as it is about simply paying more. In those sorts of discussions, what is actually currently being paid is rarely mentioned.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: