allen: extras (extras)
[personal profile] allen
From the CBO
projected deficit for 2014: $475 billion

estimated GDP for 2014: $17,606 billion

From the CIA Fact Book

estimated GDP for 2007: $14,560 billion

From the IRS, 2007 tax statistics
number of income tax returns with adjusted gross incomes over $1 million: 391,261

total income of those earners: $1,401,087,152,000

taxable income of that $1.4 trillion: $1,243,801,387,000

2007 GDP = 14,560. est for 2014=$17,606 billion. so that's a 20.85% increase. if we scale linearly:

taxable income: $1,503,133,000,000
# of filers: call it 400,000
amount of taxable income over $1,000,000: $1,103,133,000,000

additional tax surcharge required to balance budget using only income of over $1 million: 43%

current highest tax bracket: 35%

new $1 million tax bracket that would cover the entire 2014 deficit: 78%

So if somebody is worried about future US deficits, then maybe we should start by proposing a new 78% tax bracket for all income over $1 million (with the associated AMT and capital gains taxes to make it stick). And we can negotiate from there.

(no subject)

Date: 2010-02-21 11:17 pm (UTC)
From: [identity profile]
The Laffer curve is basically the fundamental theorem of Calculus, isn't it? (Taxes collected at rate 0%: 0. Taxes collected at rate 100%: 0. We have empirical evidence that we actually DO collect taxes at a rate somewhere in the middle. So there must be a peak somewhere.)

I don't think that actually is the fundamental theorem of calculus, but it's close.


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