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Biden's former chief of staff to testify in mental fitness probe
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I Asked ChatGPT What Would Happen If the Upper Class Paid Taxes at the Same Rate as the Lower Class — Here's What it Said
America's progressive tax system is based on graduated brackets that require higher earners to pay a larger percentage of their income than lower earners — at least on paper. I asked ChatGPT what would happen if the upper class paid taxes at the same rate as the lower class, and it explained that the rich would pay more, not less, if the law were changed to even the rates. In fact, it wrote that 'the U.S. economy and society would experience major shifts.' Here's what it told me. Find Out: Read Next: The Effective Rate Looks Nothing Like the Progressive Brackets ChatGPT explained that, thanks to loopholes and deductions, the effective tax rate — what people actually pay — looks more like the following table than the familiar IRS brackets that levy a 10% income tax on the lowest earners and 37% on the highest. Income Group Average Effective Tax Rate Bottom 20% (low income) 10% to 14% Middle 20% 15% to 18% Top 1% 25% to 27% Top 0.01% 23% or lower due to loopholes and capital gains ChatGPT summed it up with this: 'Despite progressive tax brackets, effective tax rates (what people actually pay after deductions) show that the wealthiest often pay less than their tax bracket — especially if their income comes from investments taxed at lower rates (e.g., capital gains, dividends, carried interest).' Discover More: What Would Change If Everyone Paid the Same Rate? The AI platform created a hypothetical scenario where all Americans paid the same effective rate of 20%. It came up with four dramatic changes that could result. The following is a verbatim recounting of its synopsis. 1. Massive Revenue Increase The ultra-wealthy would pay dramatically more. The top 1% currently hold over 20% of total income and over 40% of wealth. Equalizing their rates with lower earners could generate $500 billion to $1 trillion per year in added federal revenue. This alone could fully fund universal pre-K, child care and perhaps even universal health coverage — without raising anyone else's taxes. 2. Reduced Deficit and Debt The U.S. deficit would shrink significantly. Interest on debt could fall over time, freeing up more government funds for infrastructure, education or emergency reserves. 3. Simpler, Fairer Tax Code With fewer loopholes and income-type preferences (like lower capital gains rates), the tax code would become simpler and more equitable. 4. Behavioral and Economic Reactions Wealthy individuals and corporations might: Shift income offshore, increase tax avoidance Reduce investment (if capital gains are taxed higher) Lobby aggressively to reinstate preferential treatment It's Much Better To Be Rich Today Than 50 Years Ago The platform then provided historical context that puts today's tax framework in perspective with this verbatim response. In the 1950s-'60s, the top marginal tax rate in the U.S. was over 90%, and the economy grew rapidly. Today, the top 1% pay a smaller share of their wealth and income than they did 40 to 50 years ago. So the real impact is less about 'raising the rich to poor's rate' and more about closing loopholes that let the rich pay less than their tax bracket. Summary ChatGPT closed by summarizing its report with the following word-for-word synopsis. If the rich paid the same effective rate as the poor: Massive new federal revenue Potential for big public investments or deficit reduction Greater tax fairness Possible economic tradeoffs from investment shifts or tax planning More From GOBankingRates 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth This article originally appeared on I Asked ChatGPT What Would Happen If the Upper Class Paid Taxes at the Same Rate as the Lower Class — Here's What it Said Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data


Fox News
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Mamdani's ideas already backfired in another major US city
Rep. Mark Alford, R-Mo. joins 'Fox & Friends' to explain the problems with Zohran Mamdani's campaign promises.