War on Rich

Published on by The Inquirer

Daniel Gross (business columnist for Newsweek) wrote a good piece recently well explaining how much taxes would rise under the Obama’s administration.For those who still dont get it , here is a sum up….

1) over 250 000 a year you would pay 36 %  on each dollar over the threshold rather than 33%
2) over 357 000 a year you would pay 39 % on each dollar over the threshold rather than 36 %

For those who’re still arguing that Obama’s administration is going to spread the country’s wealth, let’s recall the 1990s where marginal taxes rates were at that level, capital was gaining ,dividend taxes were significantly getting higher.Below a list of three major indicators we have withnessed.

1.    Stock market boom

2.    Broad rise in incomes (wealthy benefitting handily)
3.    Stong economic growth

All the tax cuts that have been passed by the Republicans would sunset in 2010 according to themselves.They put in this sunset provision to hide the long-term fiscal costs of their «  wealth spreading ».For instance, if you managed to cobble together 350 000 a year in income, after substrating deductions for state, property taxes, mortgage interest ad charitable deductions, and other deductions, the amount on which tax rates are calculated might total 300 000. Then you would pay 36 %  on each dollar over 250 000 rather than 33%.Under the old regime you’d pay 16 500 in federal taxes a year.Under the new one you’d pay 18 000.The difference is 1 500 dollar per year or 4,10 per day ! For more perspective Slate.com

Published on OPINIONS

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