TheRealMafoo on 13 July 2009
| highwaystar101 said: Is that what the progressive taxation is like in the USA? that extreme Huh, I thought it was more like the UK where it is progressive but only by a margin of perhaps 18% between the wealthy and the poor. |
That's the way it works everywhere. What this points out, is when cut taxes, there are two ways of looking at it. One is the percentage rate you cut, and one is the pure dollar savings. People look at the pure dollar savings when talking about unjust cuts.
So for example, in the US, the top 1% pay 25% of US taxes, while the bottom 50% pay 3% of them. This is not because the tax rate is so much higher for the rich, it's because the rich have so much more money.
If you cut the rich tax rate by 10%, and the poor by 50% (5 times the cut), the rich will see a lot more savings, as 50% of 3% is 1.5% real dollars saved, and 10% of 25% is 2.5%
