People’s Lobby Draft Fair Tax Brackets Congressional Proposal of 2/15/10
IN THE HOUSE OF REPRESENTATIVES and senate
Proposed for 111th Congress
To request the Congress enact legislation that will return Fair Tax Brackets to our decimated economy that will help promote freedom, fairness, and economic opportunity by returning IRS tax brackets that existed when America’s middle class and economy grew and prospered.
revenues to rebuild and grow
Trends to relieve mega rich and burden an upper middle class with taxes
Whereas, in 1944 the top marginal tax rate on income over $200,000 was 94%.
Whereas, in 1954 the top marginal tax rate on income over $400,000 was 91%.
Whereas, in 1964 the top marginal tax rate on income over $400,000 was 77%.
Whereas, in 1974 the top marginal tax rate on income over 200,000 was 70%, on earned income only it was 50%.
Whereas, in 1984 the top marginal tax rate on incomes over $162,400 was 50%.
Whereas, this trend, along with the income cap on Social Security taxes and the non-indexing of the Alternative Minimum Tax, has increasingly moved the top federal bracket onto what some consider upper middle income Americans.
Whereas, under this skewed tax structure the super rich, those taking home incomes high above the $250,000 top bracket, have controlled increasing amounts of wealth, while the wealth of the middle class and those below has dramatically shrunk.
Whereas, in 1994 the top marginal tax rate on incomes over $250,000 was 39.6%
Whereas, in 2003 the top marginal tax rate on incomes over $311,950 was 35%.
Whereas, in 2008 the top marginal tax rate on income over $357,700 was 35%
Whereas, if one assumes an inflation rate of 4% since 1954, then in 2008 the top marginal income bracket would have been $1.2 million.
Whereas, the average income of all households in 2000 was $42,700.
Whereas, in 2000 the 13,400 households (1/100th of 1%) at the very top had an average income of $24 million, or 560 times the average.
WHEREAS, in 1996 the top 400 taxpayers averaged income of $74 million.
WHEREAS, in 2005 the top 400 taxpayers averaged income of $214 million.
Whereas, in 2006 the top 400 taxpayers averaged income of $263 million each and,
WHEREAS, on average, those top 400 paid an effective federal income tax of 17%, much lower than the top proclaimed bracket of 35%.
Sec 3. Rationale for reinstituting Fair Tax Brackets (FTB):
These statistical trends indicate that generations of implementing an inequitable and unjust tax policy has helped accumulate wealth and power by a few. In the meantime, the costs of addressing our many public policy needs has been borne by the growing poor and shrinking middle class.
in today’s economy, revenues are needed to pump economic vitality back into our
middle class. It is time to raise
revenues from the mega wealthy that can help address community needs,
strengthen community infrastructure, and help rebuild
Part of the revenues raised from instituting these fair tax brackets will be earmarked and recycled into involving Americans of all economic classes in direct service and learning on national and international needs, so that our long term public policy costs and blunders will be reduced.