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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
RPPeterson
October 18, 2013 at 8:10 pm

Hell, the 'so-called' 'RICH' really don't have to
pay any taxes simply by buying 'tax free' municipal
BONDS........or play with the LOBBYIST game (one name/
MANY VOTES).
RPP.

Skip
October 18, 2013 at 7:10 pm

I know this is overly simplistic, but I feel we should be taxed at the rate required to pay for the services that the majority request government to provide. If we think it is costing too much then two questions surface: 1. How can it be made more efficient? or 2. What are we willing to give up?

FEDUP
October 18, 2013 at 6:28 pm

I agree with lowball. And if there are rich folks who feel they can pay more then do it! There's a space on you tax form to give as much as you want. It's funny because folks like warren buffet squawk about paying less than his secretary but he does nothing about it but talk. He can simple start drawing a salary and pay what others with high income pay and if that's not enough he can always contribute more.

Goshen
October 18, 2013 at 4:36 pm

Can't say I have a problem with the current tax rate; it's what's taxed and how along with the other deductions that upset me. Firstly income is income and should all be taxed the same. Next, the caps on social security, medicare and medicade contributions should be lifted. 100% of your income should be taxed on these three. Along with this "ALL" individuals should receive 138% of the poverty level when they retire no matter how much they paid in. After all SS was designed to provide a minimal standard of living for all; not a savings account. Next, these funds should all be "LOCK BOXED" and the government should not be allowed to tap these programs to fund other programs. I firmly believe this will solve the entitlement programs.

lowball
October 18, 2013 at 4:24 pm

I am one of the less fortunate and I do not think rich should pay more taxes! Why? Because they are successful they should pay taxes that really won't be distributed properly or fairly?

For all you rich folks out there if you feel the need to give money to less fortunate go into the inner cities and and open up your cash distributing store.

At some point I hope to be more fortunate, but until then I don't think anyone else should be paying my way!

The rich are definitely not paying less

Allen
October 18, 2013 at 3:56 pm

Henry, you are obviously very blessed, as am I. If you think more of your money needs to be "blessed upon others with less" then you should do it yourself. There has never be any government, anywhere at any time in history that has been fair and honest in helping out their less fortunate citizens. NEVER! There are very few business that the government should be involved in: security of of our country , construction of interstate infrastructure , are perhaps 2. No government should be involved in health care, insurance, banking , but especially not in charity. Tax money does not go to the less fortunate; it never does. If it did, then the $trillions that are being spent by the government should have more than helped by now. If you have extra money at the end of your month, go give it to someone in need, and also make sure your will is written such that when you take your last breath, that whatever is left over goes to help those who can use what you did not. Just don't expect the government to do what you would have done with the left overs. It will only end up in the pockets of lawyers, judges and the bottomless pit of government spending. I don't know you at all, but I trust you to be better at finding people, or a cause that will really and truly be blessed by your helping them in this country and the rest of the world.

Henry
October 18, 2013 at 3:07 pm

I am one of those with a high income. Being retired, most of my income comes from dividends, capital gains and interest. My position is this: I am ashamed of my fellow high income people who balk at paying a little more in taxes to help those less fortunate. Every month after all of my expenses and luxury perks I still have a surplus. It's time for those of us in who have been blessed financially to share what we have with the hard working Americans who haven't faired as well. Let's stop being so selfish.

Steve
October 18, 2013 at 3:02 pm

Here's another article trying to convince the general population that the rich love paying taxes. Nonsense. The ultra rich shelter their money and pay much less than say a "rich" person making $500K. Notice how the article says rich making MORE than $750K are more inclined to pay a higher rate. Sure if your make $5M and your sheltering half, you've got a lot more money after taxes than someone making $500K. NO ONE making $500k-$750k wants to give 40% to the gov't. Notice how the article says they want to pay between 31 to 40%. Funny, bet 1 person said 40%. Nice liberal try but not fooling anyone.

Dave
October 18, 2013 at 2:52 pm

There is no news here. This article is only restating in a different way a well know truth; they ultra rich believe they should pay between 31-40%. Let's talk about the fictional tax rate they will never pay, the one next year with the Obama Care tax added on is at 44.5% next year. And that is just federal. Add in state income tax like California or NY and you can tack on and additional rate of 9-10%. At that point you are well above 50%, a rate that is theft. What the ultra rich do not tell you is that though history, whether the rate was 30% or 90%, yes at one time the rate was that high, the ultra rich have always paid a rate between 31-40%. That's the reason they don't mind paying that rate. Remember that includes all taxes, state local and federal. The people who get hit with the 50% plus tax rate are the almost rich, the small business owner or the two income couple with good paying jobs. The Donald Tumps of the world, the superstar athletes, movie actors, singers, personalities etc. They are the ones in the 30-40% range. They buy one of their homes in a state with no income tax and make it their permanent residence. Then they get good tax lawyers and accountants and use every trick buried in 50,000 or more pages of tax laws. If that is not good enough they get the Senator or Congressman to write a tax law specific to them. Government, whether liberal or conservative, picks the winners and the losers. Which side do you think the ultra rich are on? Where do you think the rest of us are?

taspayer
October 18, 2013 at 2:48 pm

Why do I not hear anything for comsumption tax.