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EconoMeter: Should millionaires be taxed more?


Sunday, September 25, 2011

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Kelly Cunningham, National University System
Answer: No

The premise that high income earners pay lower income taxes is false. According to the IRS, those earning more than adjusted gross income of $1 million pay average income tax rates of 23.3 percent. The only way to make the rich such as Mr. Buffet pay even more is to raise tax rates on capital gains, dividends and other investment income currently taxed at 15 percent. The problem is U.S. corporate taxes are already prohibitively high at 35 percent and capital gains and dividends are therefore taxed twice. This causes less investment and jobs moved offshore, clearly the wrong prescription at a time of high unemployment and stagnant economic growth.