Townhall
Finance...
Obama’s
Bizarre Tax Attack
By Larry Kudlow
9/20/11
It
could almost make your head spin.
With an economy on the front end of another recession, President
Obama’s tax
attack on the folks who are most likely to succeed, invest, start new
businesses, and create jobs is nothing short of staggering. Only
liberal-left
class-warfare ideology can explain this.
In
his speech on Monday, Obama laid
out $1.5 trillion in tax hikes over ten years, aimed almost entirely at
America’s
well-to-do. This includes $800 billion from rolling back the top rates
in the
Bush tax-cut plan, $470 some-odd billion to reduce itemized deductions
for
upper-bracket payers, and -- oh yes -- a millionaire’s tax called the
“Buffett
Rule.”
Pause
a moment on the Buffett Rule.
Almost all of Warren Buffett’s income comes from capital gains taxed at
15
percent. He only pays himself $100,000 a year, which would be taxed at
the top
rate. Most of his wealth is untaxed as unrealized capital gains. So his
effective
income-tax rate is lower than his secretary’s.
So
what?
The
vast majority of millionaires pay
a 35 percent current tax rate on personal income from salaries,
bonuses, and
small-business income. Their effective tax rate is around 30 percent,
much
higher than the roughly 20 percent effective rate for the so-called
middle
class (depending, of course, on how you define the middle class).
Remember
that the top 1 percent of
income-tax payers shoulders 40 percent of all income taxes. They are paying their fair
share. Then
remember that 50 percent of income-tax filers don’t pay any income tax
at all.
Obama
refuses to tell us what the new
millionaire tax rate would be, or what the formula might be in relation
to
middle-class taxpayers. But one thing’s for sure: This new Buffet tax
is a
penalty on investment, risk-taking, and job-creation...
Read
the rest of the column at
Townhall Finance
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