Thursday, March 25, 2010

How bad will the rich be hit to pay for health reform?

The Tax Policy Center estimates that in 2013 tax increases associated with health reform will result in a 1.9% increase in the tax paid by the top 1% of earners ( people making more than $231,179 per year) and a 2.7% increase in the tax paid by the top 0.1 % of earners (people making more than $2,875,812 per year.) The average tax rate of the top 1% in 2013 would be 33.6% and 36.9% for the top 0.1%. Now, that sounds like a lot but how does it compare to what the top 1% were paying in previous years? Here is some history.

In 1979, the average tax rate for the top 1% was 37.0%. It was 34.6% in 1980. During the boom years of the late 1990s, it was 1995 35.8%, 1996 36.1%, 1997 36.0%, 1998 34.9% and 1999 33.4%.

So, don’t feel so sorry for the super rich. They won’t be as well off as they were during the GW years when they got a lot of tax breaks but they will still be better off than they were in the late 1970s and late 1990s and so will the country.

How bad will the rich be hit to pay for health reform?

Here are some sources. Check the numbers out for yourself.

1 comment:

Mary Roberts EA said...

I just wanted to thank you for the research you are not only doing, but publicizing. This is clearly taking a lot of your time, and I would like you to know how much it is appreciated. I am an Enrolled Agent, Tax Accountant, and at this time of year my workload is high so I just can't do much research. Your sight is like a breath of fresh air... offering facts instead of propaganda and myths... I don't have time for opinions attempting to stir emotions and fear. Thank you so much.