Taxes on American Families
In the United States, 90% of people earn less than $90,000 per year. The median individual income in the United States is $27,000 per year - meaning half of all people in America earn less than that amount.
Yet, those in the middle and lower classes carry the heaviest tax burden. Here in Florida, we enjoy not paying state personal income taxes, relying on the businesses and industries in the state to pay their fair share of the tax burden. We should apply that policy nationally, where anyone under 200% of the poverty level pays 0% personal income tax, those in the upper-middle class pay just 10% (2%-14% lower than the Trump tax rate), and those in the higher income brackets pay higher rates that increase with income.
Before the Reagan era, when America’s middle class was strongest, the richest Americans paid tax rates as high as 92% on income over $2.5 million. Trump dropped the tax rate on American’s wealthiest few while raising it for everyone else. A strong economy means a strong middle class.
Our entire economy is income-taxed based - meaning 90% of the federal government’s money comes from our income taxes. Only 10% comes from business and other taxes. Those proportions are one of the many reasons why our federal deficit continues to climb.
Capital gains should be taxed at the same rate as all other income, but currently it's capped at 20%, and most do not pay that. 20% is a lower tax rate than the average teacher pays in our country. Income is income, and capital gains should be taxed as such.
Check out this tool from the Wall Street Journal that tells you what percent you are based on your income in the USA, and this website that details how tax rates have changed under former President Trump.