People’s Lobby Draft Fair Tax Brackets Congressional Proposal of 2/15/10

IN THE HOUSE OF REPRESENTATIVES and senate

Proposed for 111th Congress

 proposed BILL

 

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. 

SECTION 1. SHORT TITLE  

Returning Fair Tax Brackets to the IRS Act of 2009

Providing tax revenues to rebuild and grow Middle America

 

SEC. 2  Current Problem

Whereas, in 2008 we had 6 marginal tax brackets topping out at $357,700. 

Whereas, in 1954 we had 24 marginal brackets and rates ranging from 20 – 91%. 

Whereas, when we had progressive rates generations ago on the very rich, we built the world’s finest road, utility, education, space, and science infrastructure; and with that came the largest, most educated, and hardest working middle class the world had known.

Whereas, today’s wealth accumulation is more concentrated than in 1999, when the richest 1% (about 2.7 million people) has as much to spend after taxes as the bottom 100 million.

 

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.

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