
voodoo strategy

Tax Burden
Why Sales Tax is Regressive


Tax Rates for Single Individual 2005
| If Taxpayer's Income Is... | Then Estimated Taxes Are... | |||||
| Between | But Not Over | Marginal Tax Rate | Base Tax | + Rate | Of the Amount Over | Average Tax Rate |
| $0 | $7,300 | 10% | $0 | 10% | $0 | |
| 7,300 | 29,700 | 15% | 730 | 15% | 7,300 | 10.0% |
| 29,700 | 71,950 | 25% | 4,090 | 25% | 29,700 | 13.8% |
| 71,950 | 150,150 | 28% | 14,652 | 28% | 71,950 | 20.4% |
| 150,150 | 326,450 | 33% | 36,548 | 33% | 150,150 | 24.3% |
| 326,450 | 35% | 94,727 | 35% | 326,450 | 29.0% | |
Maximum CAPITAL GAINS & INCOME TAX rates
VooDoo Tactics

The Laffer Curve
| Reagan 1 | Reagan 2 | |||||||||||||
| 1980 | 1982 | 1987 | 1988 | |||||||||||
| Taxable Income $ | Rate | Taxable Income $ | Rate | Taxable Income $ | Rate | Taxable Income $ | Rate | |||||||
| 0 | 3,400 | 0% | 0 | 3,400 | 0% | 0 | 3,000 | 11% | ||||||
| 3,400 | 5,500 | 14% | 3,400 | 5,500 | 12% | 3,000 | 28,000 | 15% | 0 | 29,750 | 15% | |||
| 5,500 | 7,600 | 16% | 5,500 | 7,600 | 14% | 28,000 | 45,000 | 28% | 29,750 | 71,900 | 28% | |||
| 7,600 | 11,900 | 18% | 7,600 | 11,900 | 16% | 45,000 | 90,000 | 35% | 71,900 | 149,250 | 33% | |||
| 11,900 | 16,000 | 21% | 11,900 | 16,000 | 19% | 90,000 | ... | 38.5% | 149,250 | ... | 28% | |||
| 16,000 | 20,200 | 24% | 16,000 | 20,200 | 22% | |||||||||
| 20,200 | 24,600 | 28% | 20,200 | 24,600 | 25% | |||||||||
| 24,600 | 29,900 | 32% | 24,600 | 29,900 | 29% | |||||||||
| 29,900 | 35,200 | 37% | 29,900 | 35,200 | 33% | |||||||||
| 35,200 | 45,800 | 43% | 35,200 | 45,800 | 39% | |||||||||
| 45,800 | 60,000 | 49% | 45,800 | 60,000 | 44% | |||||||||
| 60,000 | 85,600 | 54% | 60,000 | 85,600 | 49% | |||||||||
| 85,600 | 109,400 | 59% | 85,600 | ... | 50% | |||||||||
| 109,400 | 162,400 | 64% | ||||||||||||
| 162,400 | 215,400 | 68% | ||||||||||||
| 215,400 | ... | 70% | ||||||||||||
| Bush 1 | ||||||||||||||
| 1989 | 1990 | 1991 | 1992 | |||||||||||
| Taxable Income $ | Rate | Taxable Income $ | Rate | Taxable Income $ | Rate | Taxable Income $ | Rate | |||||||
| 0 | 30,950 | 15% | 0 | 32,450 | 15% | 0 | 34,000 | 15% | 0 | 35,800 | 15% | |||
| 30,950 | 74,850 | 28% | 32,450 | 78,400 | 28% | 34,000 | 82,150 | 28% | 35,800 | 86,500 | 28% | |||
| 74,850 | 155,320 | 33% | 78,400 | 162,770 | 33% | 82,150 | ... | 31% | 86,500 | ... | 31% | |||
| 155,320 | ... | 28% | 162,770 | ... | 31% | |||||||||
| Clinton | Bush 2 | |||||||||||||
| 1993 | 2000 | 2001 | 2005 | |||||||||||
| Taxable Income $ | Rate | Taxable Income $ | Rate | Taxable Income $ | Rate | Taxable Income $ | Rate | |||||||
| 0 | 14,600 | 10% | ||||||||||||
| 0 | 36,900 | 15% | 0 | 43,850 | 15% | 0 | 45,200 | 15% | 14,600 | 59,400 | 15% | |||
| 36,900 | 89,150 | 28% | 43,850 | 105,950 | 28% | 45,200 | 109,250 | 27.5% | 59,400 | 119,950 | 25% | |||
| 89,150 | 140,000 | 31% | 105,950 | 161,450 | 31% | 109,250 | 166,500 | 30.5% | 119,950 | 182,800 | 28% | |||
| 140,000 | 250,000 | 36% | 161,450 | 288,350 | 36% | 166,500 | 297,350 | 35.5% | 182,800 | 326,450 | 33% | |||
| 250,000 | ... | 39.6% | 288,350 | ... | 39.6% | 297,350 | ... | 39.1% | 326,450 | ... | 35% | |||
| * Married Individuals Filing Jointly | ||||||||||||||
![]()
© 2006 Vanderbilt