Originally Posted by Kingfish

Just to point out the flaws in your logic
1. Your millionaire would quit paying social security taxes after his first $106,800 in income.

Assuming both your millionaire and average guy are self employed your millionaire would pay $13,243 in social security taxes or 1.3% of his income in SS Taxes. Your 34k a year guy would pay $4,216 in social security taxes or 12.4% of his income. So basically what you?re left with is the 34k a year guy?s last dollar tax rate is actually 27.4%. Now that doesn?t even count other regressive federal taxes such as the gasoline tax. Your 34k guy could easily end up paying another 1-2% of his income into Federal government taxes depending on his daily commute. Meaning the millionaire?s effective top rate is really only around 5% more than someone making 34k.

Now let?s have a little more fun with this let?s take a guy who makes 40k instead of 34k his total last dollar federal tax rate would be 25% +12.4% = 37.4% or higher than that of your millionaires 35% +1.3% =36.3% but yet the 40k a year guy gets none of the special beaks you advocate for the millionaires.

2. Your other flaw is you assume that a 35% rate is a 35% rate on all income it is not. Both the millionaire and the guy making 34k pay the same rate on their first 34k of income 15%.