In the event of a crash landing, these are the income groups that will see their total tax burden increase in pure percentage terms.
They would see their income tax rates jump by nearly 20%, the capital gains tax rate increase by nearly 60%, the total tax rate on corporate dividends increase by nearly three times, their Medicare payroll tax rate increase by 62%, and the death tax rise from the grave with a 55% rate.
An FTT would crimp economic growth and thus would reduce total tax revenue, not increase it and finally, we do indeed have several FTTs currently and also know that they crimp economic growth and thus reduce total tax revenue.
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This country is facing major fiscal challenges and most of the people still think the Bush tax cuts reduced Federal tax revenues, that the Bush tax cuts resulted in the top 1% paying a lower share of the total tax bill, and that the only way to increase Federal tax revenue is to raise tax rates.
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After marginal tax rates were reduced in 2003, Federal income tax revenues increased sharply and the wealthy once again saw an increase in their share of the total Federal income tax burden.
The gas tax increase, which is being phased in, will total 8.5 cents a gallon by 2012.
It appears fair to say that an increase in total government size of ten percentage points in tax revenue or expenditure as a share of GDP is on average associated with an annual lower growth rate of between one-half and one percentage point.
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Among the highest income one percent, the payroll tax cut accounts for only about 0.1 of a point of that total 4.5 percent increase.
The tax increase on the dividends or Fiscal Cliff Cost (FCC) has a small impact on the total return of the overall performance over a day, week or even a year.
Income from value added tax, the government's biggest source of tax revenue representing about 36 per cent of the total, has been falling since 2008, despite a sharp increase in the rate -- the main rate is now 23 per cent.
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