We Are All In The Same Boat….. NOT!

Delaware’s 1 percent reported average income of $863,734 in 2012.  There are 4747 filers in Delaware who meet the 1% threshold.

What that means is that half of those, 2424 have to make more than $863,734…

Currently everyone making more than $60,000 each year, pays the same marginal rate. … So all these 2424 pay the highest rate of 6%…..

So if all 2424 average above $863,734 then the minimum income available to be taxed would be this product of both.

2525  X  $863,734  =   $2,093,691,216   That is as in two billion…

Therefore, if we raise tax rates on this group, with each percent, we would raise $20,936,912. ($21 million) Enough to fund all of Delaware’s casino losses for a full year or the average spent on Race To The Top per each of its 5 year cycle; or a one percent raise for all of Delaware’s state employees.

Keep this in light of the startling fact that this group grew incomes at 15%….  15% of $2 billion is $300 million.   So whereas this group of 2424 top 0.5%’rs grew incomes at $300 million yet paid the same rate as someone making $60,000… that person stuck making $60,000 lost income at 1.6% but still paid the same rate as those earning a combined $300 million a year….

Which is why saying we can’t fund seniors credits for school taxes is nothing less than a joke…. Perhaps such might be true, IF WE WERE TAXING THE TOP 0.5% AT ABSURD HIGHLY RIDICULOUS RATES.  But we aren’t.. 

• California charges 13.3%… It’s economy is booming btw.
• Oregon charges 9.9%… Doing well too.
• Minnesota at 8.95%… No harm there.
• Iowa 8.98%… Those corn huskers are quite happy there.
• New York 8.82%… Everyone “Hearts” NY.
• Our neighbor, New Jersey?  8.97%….

Even Republican Scott Walker’s state, Wisconsin charges higher:  7.65%!!!

There is a lot of room to expand….

Here is the recommended rate schedule that Delaware needs to implement.

• Incomes over $400 billion   @ 12 %
• Incomes between $400 and $100 billion  @ 11%
• Incomes between $100 and $1 billion  @ 10%
• incomes between  $1 billion and $400 million @ 9%
• incomes between $400 million and $100 million  @ 8 %
• incomes between $100 million and 1 million.   @  7%
• No change for incomes under $1 million…

The reason for the above is contingent on how much each level of income impacts the local economy.  Those who don’t provide a local benefit with their purchases, should be taxed higher than those who do.  And keep in mind this is all taxed marginally… That means the the first million for all of the 2424 is taxed the same, and only those amounts that expand over into the higher brackets will pay out at a higher rate….

For any sacrifices to be borne at all by those losing income at rates of 1.6% without ramping up the donations exculpated from those whose incomes rose 15% over the same identical time frame, is simply unjust, immoral, and positively Un-American.

These people have to be taxed more.  No if’s; No and’s; No but’s.

It is so obvious… Like hitting you in the eye with a big Pizza Pie!