The 6% Profusion

If you liked my "30% Illusion" posting - Here's part 2.

We are still targeting the UNREPRESENTED SUCCESSFUL or the 3.7 million tax filers of people making between 200K/year and $1 million/year.

Here is the expanded data on the Unrepresented Successful (let’s call them US for short):
Average adjusted gross income is $350K
Average taxable income (after deductions) is $290K
Average federal tax paid is $74K for an effective tax rate of 25%
Average Combined W2 Box 1 is $192K

I am looking at the W2 because we must have aFICA phase out. For purposes of my study, I put the FICA phase out at an even $100K for 2009 which means $92K of W2 wages ($192K - $100K) are not subject to "payroll taxes".

Removing the FICA ceiling, another 6.2% can be taken from the $92K - call it security for social security. That means another $6K from US's net income each year.

So, the 3% Illusion takes from US about $24K from net income and another $6K based on the 6% Profusion proposed here. So US better get ready because we need to take about $2.5K every month from US so we can be fairer.

But hold on, it can't stop there because the 6% Profusion only nets an additional $21B in taxes. We need to include those making between $100K and $200K in this plan as well because it doesn't make sense to stop FICA at $100K and start it up again at $200K. In the spirit of simple fairness we are lifting the ceiling for everyone (equal protection?). This is important because while there are on 3.7 million of US tax filers there are another 10.0 million between $100K and $200K which will net an additional $28B dollars.

So let's add it all up: $90B from the 3% illusion tax + $21B from the 6% Profusion Tax on US + $28B from the 6% Profusion Tax on filers below $200K results is about $140B in new government revenues. Now that's worth going after.

And, even if you know what is going to happen, there is little you can do about it because you have no representation.

Taxation without representation. Anyone for tea?