- either 30% of their contribution,
- or 18% of the their contribution.
Every family or individual
with an adjusted gross income of 70,000 or greater
will experience a tax increase
ranging from $283 to $4,322 per year.
The Brookings proposal contains 2 tables showing this information. The tables are broken down into quintiles of income, which means 20% levels. In their 30% Proposal, those earning less than the top 90% would save on taxes. In their 18% Proposal, those in the lower 80% of earners would save in taxes.
You might say that doesn't affect you. However you would be wrong, because:
- the 80% threshold is about $70,000 per year,
- the 90% threshold is about $113,800 per year,
- the 95-99% threshold is $159,600 per year, and
- the top 1% is $380,400 per year.
If your household tax form income falls within any of these levels, your taxes will increase.
Remember, the top 25% of tax filers pay about 86% of the total taxes received. And, the top 10% pay 70% of the taxes received by the government.
The Brookings proposal shows tax savings for those in the first 60% of tax filers. But, of this amount, nearly 50% pay NO taxes at all. So they won't save anything. Thus, The Brookings proposal is misleading.
The remainder of us who are still employed and earn more than $70,000 per year (per person or family), will pay more taxes, especially if The Brookings 18% Proposal is adopted.
So don't be fooled. Tell your Congressman or Senator NOT to support this masked tax hike!
Sources:Brookings - Proposal to Restructure Retirement Savings
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