The Fairer Marginal Tax Rate Principle

In 1986, the top 1% (ranked by AGI - Adjusted Gross Income) of individual U.S. income tax returns aggregated 11% of the total AGI of all individual returns. And the tax for the top 1% was 26% of the total tax. In 2008, the income of the top 1% doubled to 20% of all income, and the tax for the top 1% had grown by only half to 38%.

This suggests the Fairer Tax Marginal Rate Principle: For individuals with incomes exceeding $1 million (2011 dollars, adjusted for inflation), the marginal tax on income will be twice the share, for their income percentile, of total income for the previous tax year.

File 08in05tr.xls (retrieved 8 Oct. 2011 from

(This article written by the pool in La Jolla, California.)

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