What should the maximum federal tax rate be?

I am in favor of a tax rated capped at 25% for all.

But that rate would include all taxes - state, local, federal and SS and Medicare.

There is no way that anyone can convince me that the government should ever take more than 25 percent of a persons income. Back in the old days they would have a revolution just at the thought.

Well, at the risk of being bashed because someone will consider this is a religious answer, I say the maximum tax for all should be 10%. That is all that is requested in the bible.

But, if we give 10% to the federal government, then the state will want it's 10%, the county and city combine for an additional 20%, school taxes at least 10%; that adds up to about 50%, leaving little for you to advance your business aspirations.

Oh, I forgot the social security taxes -- so, I guess if you just volunteer your time and effort you can call it even and Obama will love you for spreading the wealth.

The problem with what the fed's propose never take into consideration the other taxes that are imposed on people.

I like Ike,

When the White House hosted the GOP President — Dwight D. Eisenhower — who refused to push tax rate cuts for the high-income set. Throughout Ike's Presidency, the top tax rate on income over $400,000 stood at 91 percent.

WASHINGTON (Reuters) - Most U.S. and foreign corporations doing business in the United States avoid paying any federal income taxes, despite trillions of dollars worth of sales, a government study released on Tuesday said.

Paying for World War I forced the federal government to raise the tax rates to two percent on taxable income over $2,000 to 67 percent on all income over $2 million. There was also an excess profits tax levied on businesses and individuals. Still, 95 percent of Americans paid no income tax.

Industrialist Andrew Mellon led the charge to lower the tax rates on the wealthy in the 1920s. He claimed that doing so would increase overall tax revenues and stimulate the economy. The top rate was eventually cut from 73 percent in 1921 to 25 percent in 1926. Mellon alone saved $800,000 a year in taxes as a result.

Unfortunately, Mellon's tax cut was a disastrous idea for most Americans. Income was distributed upward, into too few hands. The money was used for speculation in the stock market rather than the creation of jobs. The ultimate result was the Great Depression. (Who could have foreseen that)

Capital gains should be taxed at the same rate as earned income, because the tax rate should be the same, no matter how a dollar is earned. The mortgage deduction should be limited to primary residences and limited to the first $200,000 of value. Deductions should be strictly limited -- outside of homes, children, charitable deductions and retirement savings, there shouldn't be anything more. And the top individual tax rate should return to the 70 percent rate of the 1960s.

Those who have the ability to pay the most in taxes should pay the most. Real tax reform must include provisions to make the rich carry their fair share of the tax burden. It worked in the past, and it can work again.

I think it depends on how much you make or what you buy. Necessities should not be taxed at all. Luxuries should be taxed at rates that increase with the value of the item. People who say taxing the rich is not fair and backing up their argument with the fact that the rich take risks and create jobs seem to not understand that nobody needs to clear more than a billion dollars a year. People seem to forget that the people who work for these people deserve to live a decent life too and without them, the rich would not be able to capitalize on their risk. Many jobs require risk to personal safety. Is that not just as, if not more so deserving of reward than one who risk mere money?

You are a little confused on a few things. First of all, that tax rate you are talking about only applies to C Corporations, which means it is the Corporation's responsibility to pay those taxes, not the owner. It's high I know, and I don't think it should be, but that's the truth. Second of all, the Cap on SS wages is 102000 in 2008, going to 106200 in 2009. Now I agree that paying into SS is a waste of time, considering it's bankrupt. As far as the max fed rate for Corporations, I think it should be 25%.

Well, we could model the structure like another socialist country, Britain. Goes like this: Your national 'health care insurance' is 11%

Your maximum income tax rate is 40%

Your dividend tax rate is 32.5%

Tax on savings income, 40% Then add all the little unseen taxes on top. http://en.wikipedia.org/wiki/Taxation_in_the_Unite...

I sure we could get higher than that since we have a larger population of The Evil Rich. Don't know if you remember back that far, but the 'Beatles' received a commendation from the Queen, since the taxes on the boys boosted the British economy to a considerable degree.

But really the federal reserve controls it all. http://video.google.com/videoplay?docid=-165688030...

I would say abolish all income tax and payroll completely and institute a fair tax program. This would "redistribute" the tax burden to everyone and give no one an unfair advantage. That way when your small business wouldn't have to worry about any caps or how to keep profits lower.

The United States should go to a flat tax for individuals.. and the percent should be around 6% to 7%... and the sales tax should be federalized to 10%... this way everyone shares the expense

I knew the greedy republicans would disagree... wealth at any cost... thats why we are where we are today!!!

The maximum rate should be $1.00 more than what it costs us to support the programs we have currently running at as tight of a budget as they can. That would mean a major tax cut should be coming our way.

Consider that since 1962, federal revenue from progressive taxes (in which higher income people pay a higher tax percentage than lower income) dropped by 17%. Federal income from regressive taxes (which place a higher burden on those with lower income) increased by 135%. Since 1980, taxes on inheritance and investment have dropped by 31% while taxes on income derived from work have increased by 25%. Between 2000 and 2003, corporations (the institutions that perpetuate and insulate the plutocracy) saw their contribution to federal revenue through taxes fall by 36%. Bush's corporate tax cuts of 2002 and 2003 made this corporate wet dream possible. His individual tax cuts between 2002 and 2004 were a propaganda ploy to buy votes and ensure that the financial oligarchy retained a strangle-hold on the US government. Average working Americans received rebate checks of $400.00. $600 billion dollars in tax cuts went to those earning more than $288,000 per year. To ice the cake, the wealthiest 1% of Americans received $197 billion dollars in additional tax breaks. That means that each of those lucky plutocrats enjoyed a staggering $56.3 million in tax relief, but don't worry. In theory, they put that money back into the economy and it will "trickle down" to the rest of us. I have not been trickled upon yet. Have you?