Comments on: US Income of Top 0.1 Percent vs Marginal Tax Rate http://www.visualizingeconomics.com/2007/03/24/us-income-of-top-01-percent-vs-marginal-tax-rate/ Making the "Invisible Hand" Visible Thu, 28 Aug 2008 19:03:03 +0000 http://wordpress.org/?v=2.3.3 By: Marginal Rates: I didn’t ask whether an all-cheese diet is bad for you, I asked if you wanted a cheese sandwich « ACCUMULATING PERIPHERALS http://www.visualizingeconomics.com/2007/03/24/us-income-of-top-01-percent-vs-marginal-tax-rate/#comment-23207 Marginal Rates: I didn’t ask whether an all-cheese diet is bad for you, I asked if you wanted a cheese sandwich « ACCUMULATING PERIPHERALS Sat, 23 Aug 2008 07:18:32 +0000 http://www.visualizingeconomics.com/2007/03/24/us-income-of-top-01-percent-vs-marginal-tax-rate/#comment-23207 [...] country’s income away from its most powerful citizens. Here’s a historical chart, via Catherine at the Visualizing Economics blog, of top marginal rates vs. share of [...] […] country’s income away from its most powerful citizens. Here’s a historical chart, via Catherine at the Visualizing Economics blog, of top marginal rates vs. share of […]

]]> By: Eric http://www.visualizingeconomics.com/2007/03/24/us-income-of-top-01-percent-vs-marginal-tax-rate/#comment-4426 Eric Thu, 27 Sep 2007 11:44:16 +0000 http://www.visualizingeconomics.com/2007/03/24/us-income-of-top-01-percent-vs-marginal-tax-rate/#comment-4426 Eric Says: Have you looked at the fact that when the marginal rate is confiscatory that it makes income sheltering alternatives much more attractive? I would bet that during the 70% years much more of the wealthy’s income was wrapped up in private corporate entities and was not reported as personal income. Once the rates came down, you will likely see a major shift of this to LLC structures that are taxed as personal income, as there is not the same incentive to carry the overhead of the structure. Also, many of the income gap analyses I have seen, such as CBO’s, have an alarming tendency to allocate ALL corporate earnings to individuals, based on REPORTED capital gains. Of course, a good chunk of corporate equity is owned by people in their IRA/401K’s, and is not subject to capital gains, while the wealthier have income-tested out of many of those benefits and tend to report a much higher % of capital gains as theirs is not tax sheltered. Have you done some analysis on these effects? Like the site! Eric Eric Says:

Have you looked at the fact that when the marginal rate is confiscatory that it makes income sheltering alternatives much more attractive? I would bet that during the 70% years much more of the wealthy’s income was wrapped up in private corporate entities and was not reported as personal income. Once the rates came down, you will likely see a major shift of this to LLC structures that are taxed as personal income, as there is not the same incentive to carry the overhead of the structure. Also, many of the income gap analyses I have seen, such as CBO’s, have an alarming tendency to allocate ALL corporate earnings to individuals, based on REPORTED capital gains. Of course, a good chunk of corporate equity is owned by people in their IRA/401K’s, and is not subject to capital gains, while the wealthier have income-tested out of many of those benefits and tend to report a much higher % of capital gains as theirs is not tax sheltered. Have you done some analysis on these effects?

Like the site!

Eric

]]> By: Unintended Consequences » Blog Archive » The Makings of a Laffer Curve http://www.visualizingeconomics.com/2007/03/24/us-income-of-top-01-percent-vs-marginal-tax-rate/#comment-4272 Unintended Consequences » Blog Archive » The Makings of a Laffer Curve Mon, 24 Sep 2007 16:11:59 +0000 http://www.visualizingeconomics.com/2007/03/24/us-income-of-top-01-percent-vs-marginal-tax-rate/#comment-4272 [...] A cool graph from a cool site depicts both the marginal tax rate on the highest incomes and the share of income going to the top 1% over 90 years.  A few things.  Yes, that is a 94% tax rate throughout much of the 1950s.  Yes, it was at 70% before the Reagan tax cuts.  It looks to me that if you let the super-rich keep more of their income, they earn more.  And, it is plausible that the will earn so much more that tax revenue rises. [...] […] A cool graph from a cool site depicts both the marginal tax rate on the highest incomes and the share of income going to the top 1% over 90 years.  A few things.  Yes, that is a 94% tax rate throughout much of the 1950s.  Yes, it was at 70% before the Reagan tax cuts.  It looks to me that if you let the super-rich keep more of their income, they earn more.  And, it is plausible that the will earn so much more that tax revenue rises. […]

]]> By: Shankar http://www.visualizingeconomics.com/2007/03/24/us-income-of-top-01-percent-vs-marginal-tax-rate/#comment-2400 Shankar Thu, 26 Jul 2007 14:39:02 +0000 http://www.visualizingeconomics.com/2007/03/24/us-income-of-top-01-percent-vs-marginal-tax-rate/#comment-2400 Is the implication of the income work that you cite, then, that the other 99.9% of the population accounts for the rest of the 100% of the income or are other entities also accounting for the rest of the income that is being made? Thanks, and great site. Shankar (Also feel free to email me an answer to the question above) Is the implication of the income work that you cite, then, that the other 99.9% of the population accounts for the rest of the 100% of the income or are other entities also accounting for the rest of the income that is being made?

Thanks, and great site.

Shankar
(Also feel free to email me an answer to the question above)

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