Congress looking for ways to raise taxes on the rich without actually raising them
One possible change would tax the entire salary earned by those making more than a certain level — $400,000 or so — at the top rate of 35 percent rather than allowing them to pay lower rates before they reach the target, as is the standard formula. That plan would allow Republicans to say they did not back down in their opposition to raising marginal tax rates and Democrats to say they prevailed by increasing effective tax rates on the rich. At the same time, it would provide an initial effort to reduce the deficit, which the negotiators call a down payment, as Congressional tax-writing committees hash out a broad overhaul of the tax code.
That idea could be combined with the reinstatement tax code provisions that once prevented the rich from taking personal exemptions or itemizing deductions. Those rules were eliminated by the tax cut of 2001. Reinstating them would tack an additional one to two percentage points onto the effective tax rates of high-income households without raising the 35 percent rate, but which households would be affected has not been decided. In all, tax experts say, families in the top tax bracket would find their effective tax rate jump to 41 percent, even though the top statutory rate would remain 35 percent.
Blowback
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we are in the best of hands.
rob verdi on November 23, 2012 at 8:11 AM
To be honest, I would be okay if the GOP agreed to some idiot “fairness social justice” tax where incomes above a million dollars had their rate increased 2-3%.
rob verdi on November 23, 2012 at 8:14 AM
When that fails utterly to even make a dent in the deficit, will we get real spending cuts or more demagoguery about the wealthy not paying their fair share? I think we all know the answer to that.
Odysseus on November 23, 2012 at 8:25 AM
Until professional athletes and hollywood types get hit with tax increases, I don’t want to hear about it.
Washington Nearsider on November 23, 2012 at 8:34 AM
Wow.
They’re going to have a tax that imposes a huge penalty for people for making over a certain amount of money, but not if they make 1$ less?
Gee, what could go wrong?
I guess those greedy rich are just going to have to share the wealth. We’re not going to see a cratering of investment and expansion at all.
Evidently, the Democrats think that rich people get rich via the lottery. Or, you know, they just get lucky, and one day they just start raking in millions.
HitNRun on November 23, 2012 at 8:40 AM
This seems like a tax proposal premised on the idea that athletes and film acting is the way money is made in this country. In the real world, most people become millionaires by struggling to expand their business while earning in the 6 figure range for a very long time.
This change will be the end of business expansion and hell, maybe even personal ambition.
HitNRun on November 23, 2012 at 8:43 AM
It would be nice if ‘real’ journalists would cover the fact that all this tax talk is just a political game and a distraction that has no real bearing on our fiscal issues. Then I’d be more willing to play along. But instead, it seems most of the media is content to go “full retard”.
MechanicalBill on November 23, 2012 at 8:55 AM
I do believe that Hollywood and political types believe this is how everyone becomes wealthy. You are just ‘discovered’ or elected one day and handed a wad of cash.
MechanicalBill on November 23, 2012 at 8:58 AM
Cut the rates.
Remove all deductions.
See tax revenue rise with lower rates.
Why the Left doesn’t do this and steal the ‘we cut the rates’ mantra is beyond me… oh, wait, they would have to give up doling out deductions to favored groups to build dedicated constituencies… sigh… too bad they care more about power than about the well being of the Nation and its citizens.
ajacksonian on November 23, 2012 at 9:06 AM
When confronted with the fact we are broke, most of the Left go, “LOL there’s plenty of money.” They figure rich people are like Scrooge McDuck, and have some off-the-books vault somewhere to use as swimming pools. If we can’t stop taxing the rich, we should direct it as much as possible at the Blues (Hollywood, coasties with overpriced homes, etc).
Sekhmet on November 23, 2012 at 9:12 AM
Selling a home like me next year? In addition to possibly owing tax revenues on the profit of a home, get ready to pay an additional 3 percent capital gains tax. Why, because the government helped you fix it up? Nope. Why, because they listed it for you? Nope. Well, they must have paid part of the mortgage. Nope. You’ll pay it because they told you to pay it.
hawkdriver on November 23, 2012 at 9:17 AM
They don’t want it to make a dent in the deficit. They want at least a temporary pool of tax revenues they can divert to a voting block.
Mitt wasn’t wrong to talk about the 47 percent. He just didn’t realize it had crept above 50 percent. WSS!
hawkdriver on November 23, 2012 at 9:20 AM
Fair point. I’ll rephrase.
Until the loopholes which are exploited by professional athletes and hollywood-types are closed, forcing those yelling the loudest for tax increases to actually be affected, I don’t want to hear it.
Washington Nearsider on November 23, 2012 at 9:52 AM
And isn’t all of this – when the metal meets the meat – really what the left/right divide is about?
We do what they say because they said it. My mother was famous for this precise line of reasoning. Hell, she’s STILL famous for it, and I’m 32. “Because I’m your mother” or “because I said so” are end-all be-all winners for her.
She can’t fathom that one would NEED a reason past that. It’s probably why she’s a straight-ticket Dem voter even though she wants a wall with machine guns on our southern border and a glass parking lot in the Middle East.
Washington Nearsider on November 23, 2012 at 9:56 AM
We’re told we’re not smart enough to invest in our own future so the government invests in a retirement account for us. Social Security. No choice. But close to reaching the opportunity to take back out of SS, they say, oh, it’ll be means tested. What? That’s like having two private sector retirement accounts and one saying, “Hey, looks like you’re set up pretty well with your company X investments. We won’t be paying you from ours.” Suckahs!
We plan and they move the bar. I’ve tried to prepare for my retirement because we’ve been told for a decade SS won’t be there for us. Now my private sector retirement funds are taxed at a higher rate and they invent new taxes. Want to try to sell your home without using a realtor and saving the 3-5 percent commission? Sorry, we’ll charge you three percent CG Tax anyway. Suckahs!
hawkdriver on November 23, 2012 at 10:11 AM
And the worst part – there is absolutely nothing you can do about it. Nothing.
They know you know they’re just screwing you because they can. They also know you have no recourse.
They move the bar only because we plan. If we would just subjugate ourselves to the State, we’ll be fine. For a while. And every generation after us is boned, but hey. Semper I, right?
Washington Nearsider on November 23, 2012 at 10:19 AM
lol, At first I thought that was a typo. I’m stealing that.
hawkdriver on November 23, 2012 at 10:25 AM
Lol. No typo.
I flew with a guy who used that all the time as his go-to euphemism whenever someone in our unit would screw him. I stole it simply because it requires less explanation than Blue Falcon.
Washington Nearsider on November 23, 2012 at 10:29 AM
Oh I am SO with you on this. If the big shots actually had to pay all their taxes, with no loopholes and no exceptions, there would be one hell of an attitude change.
MelonCollie on November 23, 2012 at 10:42 AM
You’re not a Marine Cobra Pilot are you? Cause I gotta story.
hawkdriver on November 23, 2012 at 10:56 AM
As far as I’m concerned, they should raise the rates on people making over a million dollars and close the loopholes for them. It’s four years to the next presidential election and I think the country should get at good, long look at what this policy will bring them in revenue (not much) and funemployment(lots).
Give the left what they want and let it burn.
trigon on November 23, 2012 at 11:03 AM
Nope. I’m a rescue swimmer. More precisely – I was until 2010.
I’m still up for the story though
Washington Nearsider on November 23, 2012 at 11:09 AM
Heh.
Story on, hawkdriver.
davidk on November 23, 2012 at 11:21 AM
WN, drop a email here if you care. It’s a throwabout account. I’ll email you back with my Cobra story when I get back from shooting with Mrs. Hawkdriver.
hawkcontractor@gmail.com
hawkdriver on November 23, 2012 at 11:23 AM
You too. Or if you don’t want to email, check back later and I’ll drop it in here.
hawkdriver on November 23, 2012 at 11:24 AM