Originally Posted by Swanman
The idea that someone making $250,000 should be in the same marginal bracket as someone making $10 million a year doesn't make sense to me. It wouldn't be a huge difference in tax rates, maybe a top rate of 35% for those making between 250k and $2 million, then bump it to 38% for anything above $2 million.
Okay, so under your idea a person who makes $2mil/yr would pay $700,000/yr in federal income taxes and if the same person instead makes $2mil+ 1 dollar/yr would pay $760,000/yr in federal income taxes.
Do you really believe that an extra dollar worth of income should equate to a penalty of $60,000 dollars? Even more extreme could be the difference between .49 and .50 at the end of the 2mil, 1 extra penny of earned income should penalize an individual $60,000, really?