Posted on 06/14/2007 11:43:14 AM PDT by bruinbirdman
Last week, Democrats on the House Ways and Means Committee released a draft of their tax plan that would raise the highest income tax rate by 4.3 percentage points to 39.3 percent immediately. And because the proposal doesn't extend the Bush tax cuts, the highest income tax rate would rise to the neighborhood of 44 percent after 2010; this would lift the top federal income tax rate higher than it was even under Bill Clinton, says the Wall Street Journal.
Moreover, families with incomes between $250,000 and $500,000, the "marginal" tax rate paid on the next dollar of earned income could soar to 80 percent, or in some cases even above 100 percent. The point of this revenue grab is to pay for making families with earnings under $250,000 a year exempt from the Alternative Minimum Tax (AMT):
**Without legislation this year, the number of Americans who pay the AMT will rise as much as six-fold to 23 million.
**Even those with incomes as low as $60,000 could pay the AMT in some high-tax states.
**Maryland's Chris Van Hollen, chairman of the Democratic Congressional Campaign Committee, has said his party risks a tax revolt in 2008 without some kind of AMT patch.
So Democrats are proposing to raise taxes on three million Americans in order to exempt 20 million from the AMT, says the Journal:
**The wealthiest 1 percent of Americans already pay more than one of every three income tax dollars into the Treasury.
**Under the Ways and Means proposal, the share of all income taxes paid by the top 1 percent would rise to nearly 40 percent.
**The top 2 percent would pay roughly as much as the bottom 98 percent of all taxpayers.
Source: Editorial, "100% Marginal Tax Rate," Wall Street Journal, June 14, 2007.
100% tax rates! DNC chairman Moa must be happy.
The majority of Americans must want this. We are a representative democracy, after all, and since their chosen ideology is now in power, it must be what they want.
Well, the Sheep have finally gotten what they wanted. May they be truly thankful for what they are about to receive.
Stupidity knows no bounds. This tax hike would be passed off to the consumer.
Huh?
Didn’t I read that John and Theresa Kerry paid about 16% in taxes in 2003?
How do the rest of us get that sort of treatment?
Yikes. Sorry, I was thinking about another dumb proposal the Demos were trying to push through.
Income tax is no longer your money, therefore BOHICA. This time with a little more gusto.
Please tell me how else can we pay for the socialist programs for the fine citizens of Mexico?
You ain’t seen nuthin’ yet.
This is sure to slow down the economy fast and big time.
Read the tag line.
Simple...
They only earned what Johnny boy makes as a Senator and whatever Terezzzzza is paid by Heinz or whoever pays her (which is probably out of a trust anyways).
Income tax is an “earned” money tax. Therefore, when you invest in bonds, municiple bonds, stocks, and hedge funds, you are subject to the capital gains tax (if it’s over calander year’s time between purchase and sale of said financial insturments). Interest earned on Munis are tax exempt for federal purposes (and depending upon your state’s tax code, could be tax free for the state income tax purpose too).
The interesting line is “our party is headed for a tax revolt”
UH DUH! YA THINK!?!? Maybe they’ll sink themselves and do just that. Perhaps it’d be worth the 2 years of high taxes to bring about a revolt, but alais, I have NO hope in the American people to wake up once the taxes GO up. If they’d stop hijacking our paychecks and made us cut a check, we’d have already revolted on this issue.
Uh, abolish the AMT and poof! they don’t have to go through all of these machinations. And it’s good politically for the dems if they do. The republicans would be SOL if the dems did this, because the republicans would never again be known as the prty of “low taxes” (snort).
When he refers to a "tax revolt" you just know what he's thinking about, AK-47s and all.
What consumer? This is likely to nail my paycheck directly. There isn't any "consumer" to absorb it. It means disposable income that I won't be spending. Less reason for businesses to have employees selling goods and services that I won't have money to purchase. My experience will be multiplied by lots of others who won't be spending money that has been taxed away.
If this passes, I'll go to my company payroll administrator and immediately request participation in the key employee income deferral plan. That records my income as a liability on the company books without making it payable and taxable until I request it in the future. I'll stash as much in company matched 401k first, then fallback to deferral to keep my income under the limit.
“This tax hike would be passed off to the consumer.”
Not necessarily. But in the end, how many poor people in your lifetime ever hired you.
The wealthier will stop producing wealth, it won’t be worth it and consequently won’t be needing your help either.
I hardly consider $200,000 per year wealthy anymore considering after taxes you MIGHT be bringing home $85,000. You see they fail to mention the state, sales and property taxes on top of Federal.
The shell game continues.
Inflation, inflation, inflation.
God save the Republic!
Somebody please tell me I’m dreaming! This is nuts!
Sheep... I guess you are referring to so called -republican voters that sat out the last election so they could throw their temper tantrum....
You got what you wanted...
Exactly why Republicans have to specifically state a rate, and
not rely on terminology like ‘tax cuts’.
Let me give them a start, flat rate 7%.
Congressional Democrats are going to take our money and Hillary Clinton is going to take our personal liberty. Moving to Australia is looking better all the time.
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