Tax rate

“ By the way, for the United States of America, this effective tax rate of 16.6 percent, on average, is the lowest tax rate for the very rich in America that there has ever been. So we have already given the wealthiest people in this country the lowest effective tax rates in the history of our country, at least since they have been keeping records. ”

“ In indirect taxation, duties, and revenue taxes, a sum far greater is taken from the average household. One might very much wish that the individual householder might at least know how large a sum is thus taken from his earnings annually, for it is safe to say that in no civilized country, not even in the France before the Revolution, was individual taxation anything like so heavy. Therefore, we are beginning to find legislation, even constitutional provisions, carefully limiting the tax rate. ”

“ A change in a marginal tax rate is usually accompanied by a change in exemption, and both generally happen at the same time, either annually or in computer policy simulations. Private and national income change at the same time too. Individuals are frequently aware that their own fortunes are linked to the fortunes of the national economy and they will be sensitive to their relative position in the distribution of income. Work incentives may be more guided by the average tax rate rather than the statutory marginal tax rate. ”

“ America today stands poised to lift off into a new age of opportunity powered by one of the most exciting economic changes of my lifetime. Passed by an overwhelming 20 to 0 bipartisan vote, this proposal is really radical in scope. It dramatically simplifies the entire tax rate structure and reduces personal income tax rates to their lowest levels in over half a century. There will be only two simple rates: 15 and 27 percent. Over 80 percent of all Americans will pay a tax rate of 15 percent or less. ”

“ The tax revenues in the present budget are at the already existing tax rates applied to a higher level of income and prices. This is one of the products of inflation.
The attainment of the revenue objective under the taxes set forth in the budget is essential to meet the expenditures provided for in the budget.
The tax rates themselves are high but the effective collection under the rate are low. There is a real need for greater equity in tax administration. ”

“ This dreadful tax therefore is, par excellence, the shopkeeper's, manufacturer's, and professional man's tax; and they are assessed for it in numbers sixty times more numerous than the rich. And yet the assessment of all is laid on at the same rate! Is it surprising that the Chancellor of the Exchequer said, in support of this tax, that it was so unjust to all, that no one was worse off than his neighbour, or had any reason to complain? ”

“ This reform will be welcome relief for America's small businesses, which often pay taxes at the highest rate. And help for small business means jobs for Americans. (Applause.) We simplified the Tax Code by reducing the number of tax rates from the current five rates to four lower ones, 10 percent, 15, 25 and 33 percent. In my plan, no one is targeted in or targeted out. Everyone who pays income taxes will get relief. ”

“ The poor rate is a tax which partakes of the nature of all these taxes, and under different circumstances falls on the consumer of raw produce and goods, on the profits of stock, and on the rent of land. It is a tax which falls with peculiar weight on the profits of the farmer, and therefore may be considered as affecting the price of raw produce. According to the degree in which it bears on manufacturing and agricultural profits equally, it will be a general tax on the profits of stock, and will occasion no alteration in the price of raw produce and manufactures. ”

“ The money which is needed to pay the expenses of administering the government, if the state has no permanent source of revenue, or income, must be raised by taxation. A tax is a rate or sum of money assessed upon the person or property of a citizen for the use of the state. When assessed upon the person, it is called a poll-tax, or capitation tax, being a certain sum on every poll, or head. But as persons ought generally to contribute to the public expenses according to their ability, taxes are more just and equal when laid upon the property of the citizens. ”

“ A tax rate of 15 percent is too high for those who earn low wages, so we must lower the rate to 10 percent. (Applause.) No one should pay more than a third of the money they earn in federal income taxes, so we lowered the top rate to 33 percent. ”

“ If the constitution of a State should declare that no tax shall be levied exceeding a certain per cent of the value of the property taxed, any statute imposing a larger rate would be void as to the excess. If the legislature should say that no municipal corporation should assess a tax beyond a certain per cent, the courts would not hesitate to pronounce a levy in excess of that rate void. ”

“ It may also be said that a legislature is not bound to impose the same rate of tax upon one class of property that it does upon another. As it may exempt all of one class, so it may impose a different rate of taxation. It is sufficient if all of the same class are subjected to the same rate and the tax is administrated impartially upon them. ”

“ Income taxes.—A favorite device in some countries, [pg 361] and often advocated in this, is a direct tax upon incomes above a certain amount, graduated so as to give a much larger rate upon large incomes than upon more moderate ones. The most obvious reason for such a distinction against the large incomes is the evident failure of our national system of taxation to distribute the burden according to ability. ”

“ It is interesting to observe that the super-millionaires—those with incomes of more than $1,000,000, including the top-notchers with incomes of more than $5,000,000—paid a lower average rate of tax than persons with incomes from $300,000 to $1,000,000. The Progressives in Congress are asking why the upward graduation of rates, which is effective through all the brackets from $10,000 up to $100,000, should cease at that point. It has been suggested that the rates be stepped up until they reach a maximum figure of 35 or 40 per cent on amounts of income over $500,000. ”

“ Thursday.—Chancellor of Exchequer admittedly allured by what he describes as "attractive features" of proposal to raise fresh revenue. It is simply the levying of a special tax on all persons using titles.
Idea not absolutely new. Principle established in case of citizens displaying crest or coat-of-arms. What is novel is suggested method of taxation. Differing from the dog-tax, levied at a common rate, it is proposed that our old nobility shall, in this fresh recognition of their lofty estate, be dealt with on a sliding scale. ”

“ When they sell that asset, what happens? Two things which are very good for the Federal Government happen. No. 1, capital gains occur so we get revenues; otherwise, we would not get those revenues because people would just sit on those assets; they are not going to sell them and pay the high tax rate. When you have a fair tax rate, they sell them, the Federal Government gets the revenues, and the second thing that happens is they take that new money they have from the sale of that asset and reinvest it. By human nature, they reinvest it in something that is more productive. ”

“ At the same time, the main features of the tax become fairly evident to any one who makes a careful study of the provisions of the act, even though its application to specific cases may remain doubtful.
The law provides that incomes shall be subject to a tax of one per cent. on the amount by which they exceed the prescribed minimum limit of exemption. This is designated as the "normal income tax." There is, then, an "additional tax" of one per cent, on the amount by which any income exceeds $20,000. The rate is increased to two per cent. on the amount above $50,000, to three per cent. ”

“ One per cent. on this prodigious amount represents a tax of one hundred and ten millions, paid annually by consumers, according to their consumption, and not in any degree according to their ability. This is one instance only of the damages annually paid on account of our currency. If we estimate the annual tax at more than one per cent., the sum-total will be proportionally larger. Even at the smallest rate, it is many millions more than all the annual expenses of our Government immediately preceding the Rebellion. ”

“ The income tax law levies on all citizens or residents of the United States a normal tax of 12 percent. upon the amount of income in excess of exemptions, except that on the first $4,000 of the taxable amount the rate shall be 6 percent. ”

“ Thus it cannot be doubted that, in assessing the tax the position of each separate legatee or distributee must be taken into view in order to ascertain the primary rate which the statute establishes. One of two things must arise. When the rate of tax is thus calculated upon the particular attitude to the deceased of each of the legatees or distributees, the sum of the tax must be deducted either from each particular legacy or from the mass of the whole personal estate. ”

“ The progressive principle is so applied that each higher rate is imposed only on the excess above the amount subject to the next lower rate; so that each increase of rate will apply only to a certain amount above a certain maximum. The tax should if possible be made to bear more heavily upon those residing without the country than within it. ”

“ The tax imposed upon the first $400,000 of annual gross sales is one-twentieth of 1 per cent. The rate increases on each additional $100,000 of sales between $400,000 and $1,000,000, inclusive, being seventeen-twentieths of 1 per cent. ”

“ Chewing gum now taxed 2 percent. of the selling price, to pay 1 cent on each 5-cent package.
"Motion-picture shows and films: abolish the foot tax of 1⁄4 and 1⁄2-cent a foot and substitute a tax of 5 percent. on the rentals received by the producer, and double the tax rate on admissions.
"Double the present taxes on alcoholic beverages, tobacco and cigarettes.
"Automobiles—a license tax on passenger automobiles graduated according to horsepower.
"Double club membership dues.
"Household servants, made 25 percent. of the wages of one servant up to 100 percent. ”

“ Now if Americans today still paid the income and excise tax rates in effect when I came into the Presidency, in the year 1964, their annual taxes would have been over $20 billion more than at present tax rates. ”

“ If a person has an asset, say, a home or small business or stock, they don't want to sell that asset when they are going to have to pay 30 percent or 25 percent in taxes on that sale because they don't want to have to pay all those taxes for that asset they spent their whole life building up, trying to make ends meet, trying to create a nest egg for themselves. When you put a fair capital gains rate on that sale, which is today 15 percent--which is the fair rate which was put into place by President Bush's proposals--then people are willing to go out and sell that asset. ”

“ Under this class the following income was taxed: income derived from all those trades and occupations which are subject to a license tax; the income of mining and smelting establishments, and the profit made by the tenants of agricultural lands. In the second class, which includes income from services rendered or labor performed in occupations not subject to a license tax, the rate reported is exceptionally high. Under the third class, which embraces interests from loans, from invested capital, savings banks, and life-insurance companies, the rate is reported to be ten per cent. ”

“ Sec. 102. 5 percent reduction in individual income tax rates. Sec. 103. Repeal of alternative minimum tax on individuals. Sec. 104. Reduction in corporate marginal income tax rates. Subtitle B—Reduction of Income Taxes on Capital Assets Sec. 111. Indexing of certain assets for purposes of determining gain or loss. Sec. 112. Reduced capital gains rate for corporations. Subtitle C—Other Provisions Related to Businesses Sec. 121. Repeal of certain limitations on the expensing of section 179 property. ”

“ Basically, what has happened is that even with the lower tax rates today, wealthy people are paying more in revenues to the Federal Government than at any time in history. Today the top 20 percent of people in this country who have income are paying about 85 percent of the tax burden. ”

“ On tax reform, we want to make corporate rates lower and bring down individual rates for you, the American people, in order to provide the incentives that spur economic growth. The tax reform bill passed last year by the House has its weak points, but it succeeded in lowering both corporate rates and income tax rates for most individuals. ”

“ The rich are not paying enough taxes, and these tax laws are disproportionate in their application. I think we need to talk about that a little bit because let's see what has happened as a result of reducing these tax rates. ”

“ The estimated revenue from these sources was $877,500, affording a small excess over the sum which would be required to pay the interest on the assumed debt. The policy of the measure was discussed in a well-digested and able argument, detailing many motives, in addition to those assigned in his original report, for preferring the system now recommended to accumulated burdens on commerce or to a direct tax on lands.
A new tax is the certain rallying point for all those who are unfriendly to the administration or to the minister by whom it is proposed. ”

“ But by the ingenious plan of taxing articles on which incomes are expended, rather than openly demanding a portion of the income itself, the amount of taxation is concealed from the mass of taxpayers, and its payment is made to appear in some measure voluntary. The indirect tax being generally advanced rather than paid, as has been already shown, in the first instance by the importers, the ultimate purchasers for consumption confound the tax with the natural price of the commodity. ”