Sunday, December 13, 2009

How Many Ways Can the Democrats Tax the Rich?

Business Week reports:
Soaking the rich may appeal to the Democratic base, but tax analysts say there isn't enough money at the high end of the income ladder to finance the Democrats' wish list without imposing confiscatory rates. About 4.5 million households filed tax returns reporting $200,000 or more of income in 2007, according to IRS data. They paid a combined $610 billion, or 44%, of all federal income taxes. "It's just not possible to get the revenue you need only from this group," says Joel Slemrod, director of the Office of Tax Policy Research at the University of Michigan.