Yes, they pay more than the middle class or poor for the most part, but it's obviously not enough
I'd say the rich pay more, always, not "for the most part." And why is it "obviously" not enough?
Part of the problem is loopholes, deductions, exemptions, etc. Many times someone making $500,000 will pay the same percentage as someone making $100,000 because of those things.
I question your numbers, but get the point your trying to make.
That's why I'd rather get rid of those things, and lower the rates. That way, someone making $500,000 only pays a rate of, say 20% on their income above $370,000 instead of 36%, but they don't get exemptions for things they shouldn't get exemptions for.
That would simplify the tax code, and it was proposed by Obama's debt commission. It would be tough getting it to pass though. The left won't like making poor and middle class people pay more, and the right won't like elimination of rich peoples tax cuts.
And thats one reason a flat tax, or consumption tax would be a good idea. Basically a national sales tax. If you buy more stuff, you pay more taxes. You can have exemptions for things like food and essentials. Then the need for tax returns is pretty much eliminated.
Yes, that might make it not worth it to some people. My guess is that if a certain person has the opportunity to start a small business that will make them $500,000 a year, the difference between making $330,000 and making $370,000 after taxes isn't going to make or break the deal for them.
No but the difference between keeping $50,000 a 90% rate and $350,000 a 30% rate would make a difference.
Is all this argument over a 34% rate vs. 26% rate? What rate do you think the rich should be taxed at? Why are they "obviously" not taxed enough? A business owner should say their taxed too high, and point to high unemployment as an example.
Of course there's a point where it's just not worth it to anyone, but I'm not proposing anything near that. For many years the top tax rate was over 70%, and we still had plenty of people starting businesses and doing just fine.
GDP took off in the US in the early 80's, when tax rates were lowered below 50% for the first time in decades. Plus the population of the US was much lower back when tax rates were 70%+, if we went back to the economic activity levels of those times, we'd have millions more unemployed. When population grows, economy has to expand, to find jobs for the extra people.
There are more reasons than just money that people start businesses, too.
Name one. Sure it's nice to be your own boss, make your own hours ect. But thats all secondary, if you can't make money and pay your bills, no one is starting a business. Try walking into a bank for a small business loan, and telling them, you don't plan on making money, but you'll have a lot of fun... even non-profits, have to make money to pay people and keep the lights on.
