[carlob]

> Real question for OP (and others): What do you think is a reasonable effective income tax rate? (Please do not confuse effective and nominal tax rates!) In my view: "All in" should be about 50-55%. When I say "all in" I mean absolutely everything -- federal, state, local, national pension, national health (if applicable), yada yada yada. That would mean top 1% still have net income (after taxes) of more than 200K USD.

In my view one of the big problems is that capital gains are taxed less than income from working and they are a proportional tax. The result of that is that once you get to the 0.1 % taxation becomes regressive because a bigger chunk of your income comes from capital gains.

[throwaway2037]

+9000 votes! I agree 110%. I didn't say it, but the 50-55% "all-in" should also include capital gains receiving no special treatment for high-income people.

[Mauricebranagh]

Which special treatment is this ?

Might be more sensible to give smallish tax breaks for CGT to ordinary workers and reform the taxation of worker share options no more crippling tax bills for worthless options.

Id also encourage listed companies to offer UK style share saves to all workers to allow those lower down the food chain to actually get some equity.

[throwaway2037]

You wrote: <<Which special treatment is this ?>>

Good question. For the United States, I reference: https://www.investopedia.com/articles/personal-finance/10151...

If you hold one year or more:

Filing Status: Single

0% rate: Up to $40,000

15% rate: $40,000 to to $441,450

20% rate: Over $441,450

In the above, personally, I would like to remove the brackets for 15% and 20%. My point: For anyone beyond middle class, tax capital gains as regular income.

[Mauricebranagh]

Not sure what your point is those with more gains pay more here - is residential property included in this?

Taxing cgt as income has some negative aspects.

And almost 1/2 mill a year income is not what id call "middle class"