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.
Not correct. There is "earned income" (wages, tips, etc.) and there is "unearned income" (dividends, interest, capital gains, etc).
Income tax is owed on any and all "income" (earned and unearned)after all considerations (deductions, allowances, etc.)
yitbos