Individual Taxes

The 2017 federal law reduced the top marginal tax rate to 37% from 39.6%
on taxable income over $500,000, since, inflation increased to $609,350 for 2024

 

3. Who Should Pay More?
Editor: Top 5%     Individuals > $308,600 taxable income

Marginal Tax Rate Defined

 

Top 1%  > $771,100 Taxable Income
Current Rate is Regressive 

Next 4.0% > 308,600 Taxable Income
Current Rate is Regressive

 

 

 

 

 

2. Tax Expenditures

4. Corporate Taxes

1.  Candidate Tax Policie

  
Data

Total Federal, State and Local Taxes Paid by Quintile

 

 

     
   

 

   

 

 

  
 

 

How Marginal Tax Rates Work
 At the very top of 10% bracket,
your $30,000 taxable income had tax of $3,000.

Earn another $1000 taxable income,
you pay additional $120,
not an additional $100, so total total due 3,120.

 

See Taxing the Rich

 

  

 

 

 

System Seems Progressive

 

 

 

 

If 2017 tax law not extended

  • Individual income tax rates would revert to their pre-TCJA levels. 
    This would mean higher taxes for many individuals, especially those in higher income brackets.
  • The standard deduction would decrease. 
    This would mean that more people would be required to itemize their deductions,
    which can be a complex and time-consuming process.
  • Personal exemptions would be reinstated.
    This would mean that taxpayers  would be able to claim a deduction for themselves and their dependents.
  • The corporate tax rate would increase. This would mean higher taxes for corporations,
    which could lead to higher prices for consumers.
  • The child tax credit would decrease. 
    This would mean less financial assistance for families with children.
    •