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How much income tax on the rich?

By Judy Martel · Bankrate.com
Wednesday, October 16, 2013
Posted: 6 am ET

You might assume the highest earners are the least likely to think they should pay high income taxes, especially in light of the headlines exposing rich tax evaders.

Uncle Sam wants your income.The latest confession of cheating came earlier this month from the creator of Beanie Babies. Ty Warner was found guilty of hiding more than $100 million in an offshore account and will pay $53 million in penalties as a result.

But despite the actions of a few wealthy evaders, a survey by Chicago research firm Spectrem Group finds that three out of 10 individuals with net income between $500,000 and $750,000 think Americans should pay between 31 percent and 40 percent in taxes.

While only 2 percent of respondents overall think tax rates should be that high, 14 percent of individuals with the highest incomes -- more than $750,000 -- feel that way.

For 2013, individual filers earning more than $400,000 fall under the highest individual income tax rate of 39.6 percent. The lowest tax bracket is 10 percent and applies to single filers earning up to $8,925.

Three-quarters of respondents believe Americans should pay between 8 percent and 25 percent in income tax. Nearly a quarter of those with net incomes less than $100,000 think taxes should be no higher than 7 percent.

A fifth of Americans believe taxes should be between 8 percent and 10 percent; 25 percent say between 11 percent and 15 percent; and 19 percent say between 16 percent and 20 percent.

What do you believe is the acceptable range of income tax?

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36 Comments
Andrew Nicotra
October 18, 2013 at 2:15 pm

Unfortunately there is no correct solution, only better ones that we have now. I would like to see a flat tax rate of 15% without any exemptions. Somehow we have to stop offshore banking. This may mean sending in the Marines and/or Navy Seals. Second, I recommend a 2% tax hike be imposed on all the elected federal Senators and Congressmen for every year they spend in office beyond 2 terms. This would serve 2 purposes: prevent an episode like we have just gone through with the federal budget and get some much needed fresh thought into play to solve all the social, educational, health care and financial issues that we face in this country

billybobcpa
October 18, 2013 at 12:52 pm

Perhaps one of the most uneducated surveys ever taken. Those earning say $500,000 are already paying a minimum of 28% in Federal income tax plus most likely 4% - 6% to the state. Add to that Social Security and Medicare taxes of over $14,000. All in they are already paying over a third in taxes, maybe higher. And in 2013 they will definitely see increase their taxes of 3.8% to 6.8%. With the lack of tax shelters that existed in the 1960's - 1970's, these people are paying more than ever!

CARLOSA
October 18, 2013 at 12:42 pm

I think that individual filers earning more than $250.000,00 to $400.000,00 p/year should pay income tax pay 30%; individual filers earning more than $400.000,00 to $1.000.000,00 p/year should pay income tax of 40%; and individual filers earning with more than $1.000.000,00 p/year should be done special rates. The lowest bracket should remain the same.

WILLIAM MITCHAM
October 18, 2013 at 12:42 pm

I do not feel it is an obligation, but a privilege to pay your taxes in america.

FRED
October 18, 2013 at 12:37 pm

Anyone that thinks paying more taxes is a good thing should visit the nearest Psychiatrist. Taxes are a form of legal thievery. People should ask? What am I getting for my Taxes?
Students that rank in the bottom third of scholastic achievement. A Military that is the Policeman of the World-and nobody cares. 16 plus Trillion dollars in debt. For What? Maybe a flat tax for Seniors, and Police---other than it is all a waste.

cun
October 16, 2013 at 5:28 pm

oops, meant throw in!

cun
October 16, 2013 at 5:27 pm

Good for these altruistic individuals. Question is, "What is stopping you?" Why not through in a few more %age dollars worth of taxes in with your IRS filing every year. Put your $$$ where your mouth is!

George
October 16, 2013 at 4:50 pm

There certainly is a basis for a flat tax with consideration for the lower range of earners. If there were a flat 20% tax on everyone and you make a million dollars you pay 200,000, no offsets. If you make 35000. you should be paying 7000. but offsets could be used for each dependent to lower the tax liability. The problem is the people with the big money find loopholes, look at Mr Buffett when he said he should pay more than his secretary does as he only pays on his portfolio earnings as he doesn't draw a check. He certainly could send a few billion to Mr Obama if he really felt that way, but instead his wealth is transferred to a trust to insure it isn't taxed when he dies. A flat tax takes the deduction decisions out of the picture and would work much better than what we presently have.

Rjllaser
October 16, 2013 at 3:32 pm

The entire premise of the question is a constant Obama ploy to divide, isolate and attack.

Hryder
October 16, 2013 at 3:21 pm

Flat tax with no exemptions save legal dependents up to their 18th birthday. The folks who work and are above average in brain power do get richer than less talented and motivated, that should be obvious to anyone with common sense. Viewed a tape of an unmarried woman with 10 children who seriously asked who was going to pay for the children. Then, yesterday viewed a bumper sticker that read, "If you can't feed 'em, don't breed 'em". Remember that the citizens of the USA are entitled to life, liberty, and the pursuit of happiness, and there is no guarantee of happiness.