What is it? A form of IRA that accepts contributions (to certain limits) on a nondeductible basis
CHART PRESIDENT S TAX HIKES · 40% 45% 50% 2011, top statutory rate president's top tax rate...
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35% 39.6% 2.0% 2.3% 0.9% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 2011, TOP STATUTORY RATE PRESIDENT'S TOP T AX RATE NONDEDUCTIBLE MEDICARE T AX MEDICARE TAX ON WAGES/SALARY PEP/PEASE PROVISIONS REINSTATED,2011 EXPIRATION OF 2001/2003 TAX RATES,2011 TOTAL = 44.8% PRESIDENT ’S T AX HIKES SOURCE: IRS, PRESIDENT’S FY2012 BUDGET, HOUSE BUDGET COMMITTEE ESTIMATES CHART 1
Transcript of CHART PRESIDENT S TAX HIKES · 40% 45% 50% 2011, top statutory rate president's top tax rate...
35%39.6%
2.0%2.3%
0.9%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2011, TOP STATUTORY RATE PRESIDENT'S TOP TAX RATE
NONDEDUCTIBLE MEDICARE TAX MEDICARE TAX ON WAGES/SALARY
PEP/PEASE PROVISIONS REINSTATED,2011 EXPIRATION OF 2001/2003 TAX RATES,2011
TOTAL = 44.8%
PRESIDENT’S TAX HIKES
SOURCE: IRS, PRESIDENT’S FY2012 BUDGET, HOUSE BUDGET COMMITTEE ESTIMATES
CHART 1
0%
20%
40%
60%
80%
100%
120%
BOTTOM 50% TOP 1% TOP 5% TOP 25% TOP 50%
BEFORE TAX RELIEF
AFTER TAX RELIEF
SOURCE: IRS
TAX CODE MORE PROGRESSIVE AFTER TAX RELIEFBREAKDOWN OF TAX BURDEN BY INCOME LEVEL – 2001 VS 2008
CHART 2
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
TOP INCOME TAX BRACKET
TOTAL TAX REVENUE AS PERCENT OF GDP
INCOME TAX REVENUE AS PERCENT OF GDP
TAX REVENUES DO NOT CORRELATE WELL WITH TAX RATES
FISCAL YEAR
CHART 3
SOURCE: HERITAGE FOUNDATION
TAX REVENUES ARE HIGHLY CORRELATED WITH GDP
REAL 2006 GDP ($BILLIONS)
REAL 2006 TAX REVENUES
($BILLIONS)
1950 1960 1970 1980 1990 2000
$3,500
$7,000
$10,500
$14,000
$500
$1,000
$1,500
$2,000
$2,500
REAL TAX REVENUE
REAL GDP
CHART 4
SOURCE: HERITAGE FOUNDATION
10%
25%
35%
19%
47%
66%
25%
63%
88%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
LOWEST INDIVIDUAL RATE MIDDLE INDIVIDUAL RATE TOP/CORPORATE TAX RATE
2008
2050
2081
SOURCE: CBO
CHASING HIGHER SPENDING WITH TAXES(INCREASE IN TAX RATES NECESSARY TO KEEP PACE SPENDING)
CHART 5
10
20
30
40
50
60
70
80
1947 1957 1967 1977 1987 1997 2007 2017 2027 2037 2047 2057 2067 2077
SPENDING TAX REVENUE
Ch WE ARE IN A SPENDING-DRIVEN DEBT CRISISHISTORIC/PROJECTED SPENDING & REVENUE AS A PERCENTAGE OF THE ECONOMY
SOURCE: OFFICE OF MANAGEMENT AND BUDGET HISTORIC TABLES, CONGRESSIONAL BUDGET OFFICE; PROJECTIONS BASED ON THE CBO’S ALTERNATIVE FISCAL SCENARIO.
CHART 6
%
5%
10%
15%
20%
25%
30%
35%
40%
45%
JAPAN U.S. FRANCE SPAIN ITALY U.K. POLAND IRELANDSOURCE: ORGANIZATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
CORPORATE INCOME TAX RATES
CHART 7
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
BOTTOM 20% SECOND MIDDLE FOURTH TOP 20% TOP 1%
WHO BENEFITS FROM TAX LOOPHOLESAVERAGE PER PERSON BENEFIT BY CATEGORY OF EARNERS
SOURCE: TAX POLICY CENTER/IRS
CHART 8
SOCIAL SECURITY
MEDICAID & OTHER
HEALTH
MEDICARE
0%
5%
10%
15%
20%
25%
1970 1980 1990 2000 2010 2020 2030 2040 2050 2060 2070 2080
PROJECTED TAX REVENUE
SOURCE: CBO
WHAT DRIVES OUR DEBT?(GOVERNMENT SPENDING AS SHARE OF ECONOMY)
CHART 9
CHART 10
