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Old July 10th, 2012, 08:59 PM   #1
myp
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Want Federal income tax cuts? You will give the rich the greatest cuts

But there is nothing wrong with that.

People forget this wayyyy too much. The US has a progressive marginal Federal income tax system. That means that on the first $xx,xxx in income you pay x%, on the next $xx,xxx you pay a different x% and so on. This means that by making more money you will never pay less income tax and it also means that when you cut marginal rates up to middle-class income levels, those who make more than all of those levels get all of those benefits too. There is nothing wrong with that, but it is forgotten way too much.

So for example, tax rate cuts for every level below $100,000 (I don't know if that is actually a cut-off I'm just giving an example but it is easily searchable) mean that those making more than 100k will pay that much less for each of those marginal levels and still pay the same they paid at income over 100k. A tax cut at low income levels is a tax cut for everyone who makes more than that.
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