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Originally Posted by Gabrielles blades
So your saying its ok that the super rich are paying themselves more in order to pay the middle class less because they arent paying as much taxes as previous years?
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That isn't what I said at all. What I simply pointed out was that the middle class currently pays taxes based on an histroically low tax rate to show the disparity between the existing tax rates.
By the way, the proposed cost for extending the Bush tax breaks for FY 2011 for the rich is estimated in various circles as somewhere between 36 billion $ and 90 billion $ with 70 billion $ being the most frequent number. But even if the upper estimate is accurate, that's less than 6% of the 1.4 TRILLION $ deficit projected for 2011. Yet according to that video, it's just the tax breaks for the rich that are responsible for the deficits and by extension ALL of our economic problems. Never mind that the cost for ALL of the tax cuts is estimated at 380 Billion $. And that total is ~25% of the total deficit. But hey it's ALL about the tax cuts for the rich. Talk about a load of BS! But it makes a great sound bite so lets just swallow that load of crap without questioning it.
And just to do the math for you, repealing the ENTIRETY of the bush tax cuts would STILL leave a deficit of over 1 TRILLION DOLLARS. Still think it's ALL about the tax cuts for the rich?
I will concede that the rich take great advantage of the capital gains tax rates. That's why I advocated doing away with those breaks completely and taxing ALL income as simple income. But that was based on leveling the playing field. That change ALONE would MORE than pay for extending the tax cuts for the rich.
There is actually a reason for allowing lower rates for Capital gains. That money typically comes from stock and bond investments which provide additional capital for business expansion. It's a direct economic stimulus. But in the interest of fairness, since most middle class folks can't take advantage of them, let's do away with them. Never mind that nobody is calling for the elimination of tax credits that benefit the middle class.
And it might surprise you that ~ 2/3 of the folks in that upper tax bracket (i.e. the folks actually benefiting from them) didn't think that extending the Bush era cuts for the rich was a good idea.