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Today's Nuze

"Every government interference in the economy consists of giving an unearned benefit, extorted by force, to some men at the expense of others."

Ayn Rand

Nobody's listening.

EXTENDING TAX RATES, BUT ...

By
Neal Boortz
@ March 27, 2009 8:31 AM
Permalink | Comments (13) | TrackBacks (0)

... only if you are "middle class." Not a real shocker here, but basically the Democrats are planning on extending and/or lowering tax rates for middle class Americans. Meanwhile, they will "allow the Bush tax cuts to expire" .. which is just government-speak for "increase taxes."

Senator Max Baucus says that middle class taxpayers will permanently benefit from a 15% tax rate on capital gains taxes. However, higher income tax brackets would pay a capital gains tax of 20% by 2010.

You do realize, of course, that middle class taxpayers aren't generally investors. This means nothing to most of them. The investments come from people with money to invest (duhhhhhhh), and for them ... the capital gains tax rate goes up.

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What others are saying

  • Screw the Middle Class
    Screw them, Screw the Poor, and Screw the Rich. It's time to stop segregating America and get back to equal protection under the law.
  • Middle Class
    I think I know how you define the middle class. It's the top of the bottom and the bottom of the top, cream of the crap.
  • Who doesn't want to create wealth?
    Anyone who isn't trying to create wealth for themselves is missing the boat. The opportunity is there. I know lots of wealthy people and none of them had to screw anyone( figuratively or literally) to do it. Could they be lying? Maybe, but I like to think most people are honest about how they did it. Some of them do not have degrees, few grew up wealthy. They saw what they needed to do, did it, and kept doing it. One guy I know left home at 16, had his own apartment, started 3 businesses, bought and sold several more, now he teaches other people in our industry how to position themselves to buy or sell or just to grow. If you sit in the middle class, make a decision, go forward, stay put, go backward, whatever. But shut up about how unfair it is that some are wealthy and you or others are not! Punishing people through taxes is a great incentive not to work smarter and focus on your goals. And Copyleft, grown ups don't hide ther names behind a cute psuedonym. If grown ups were running things, we wouldn't sweat making the next moves that put is in higher income brackets. Want thinly veiled socialism? Move to South America or Europe. This country was founded on the idea that we all have the opportunity, if we don't make the most of it, step aside, the next guy will!
  • wrong Neal
    You are wrong Neal. A significant portion of the middle class do invest and raising the cap gains tax hurts them the most. The blueblood wealthy, like the Kerrys, the Kennedys, et al, do not and have never invested in the market. They don't need to. They have their money and they can invest in tax exempt bonds. 4 percent of 100 million is a significant number. The middle class invests to create wealth for themselves whether it be for retirement or whatever. What this inane capital gains tax does is hurt the people like the above, not the truly wealthy.
  • its ok, it won't hurt me
    Now, I know those that think that raising taxes back to the levels under Bush Sr. and Clinton will cause the country to implode, but my memory keeps telling me that those were pretty good years for the economy. Jobs were growing, people were making money, and wallstreet was on an upward streak, all at the same time that we began to balance our budget and pay down our debts. I don't feel sorry for the rich, and personally, I'd happily pay 40% taxes to not have to worry about having enough money to live on or retire on. It's not class envy, it is just common sense. I don't envy the rich, but I do envy their ability to circumvent the tax code to pay a lower percentage of their income in taxes than I do. I work with and for rich people, and can attest that when they make more money, they don't create jobs. They continue to find ways of making more money, through layoffs or job exportation, and do not invest their profits back into their company. What drives job creation is the middle class purchasing goods and services. A business will not create jobs to fill a demand which isn't there. If you cut taxes on the middle class, and give them money to spend, it will end up going to the businesses which have superior products for sale. A rich man may then pay 3% more on his income taxes, but his income may go up 30% because of the increased consumer activity. THEN he can create jobs to fill an escalated consumer demand. Until the Fair Tax is enacted, the best way to make the rich richer is to put money in the hands of consumers who will then spend it on the goods which the rich produce.
  • Logic?
    Stan, that's like saying, "That aspirin didn't help my headache because now I've sprained my ankle." The Bush tax cuts helped the economy post 9/11. The current crisis was caused by a completely different insult. Allowing the tax cuts to expire will not fix the current injury to the economy. It will make it worse.
  • Extending Tax Rates
    saw this bill pop up sponsored by Schumer; S.394
    Title: A bill to amend the Internal Revenue Code of 1986 to provide the same capital gains treatment for art and collectibles as for other investment property and to provide that a deduction equal to fair market value shall be allowed for charitable contributions of literacy, musical, artistic, or scholarly compositions created by the donor.
    Sponsor: Sen Schumer, Charles E. [NY] (introduced 2/9/2009)
    Does "treatment" mean -- "subject to taxation"? I'm really suspicious of this bill.
  • Makes Sense
    Well obviously the Bush tax cuts did not help the economy. Therefore we need a new strategy to get us out of this mess.
  • Really Copyleft?
    Is that why our country is STILL being ran by millionaires? Why every Democrat that gets into public service as a pauper exits as a multi-millionaire? I also disagree that millionaires aren't that important. I happen to like my job, given to me by a millionaire. I could have gone out and started my own company, but I didn't. He did. My fault, not his. As for grownups now being in charge, spare me. These guys are equivalent to kindergartners running the school.
  • endgame for capitalism
    I have been giving much thought to this whole "expand the middle class" thing..

    I try not to be a tinfoil hat lunatic, but this is a pattern..

    how do you expand the middle class? well.. theres 2 ways.

    1 way is to elevate the bottom.. get them off welfare, get govt out of the way with less regulation and taxes to create new jobs and businesses.

    the other way.. is to decrease the "wealthy" population... by increasing taxes on them more and more until they simply cant make more.

    Now.. I ask myself.. since its BLATANTLY obvious that the 2nd option is what they are doing.. why get rid of the upper middle class and the "wealthy" class of americans?

    the only conclusion I can come to.. is that they want to expand the gap between the ruling elite's wealth and power and their competition, the non-govt private market powerhouse that stands in their way of complete control.

    this taxation and destruction of the wealthy class of americans and expanding of the "middle class" by extension is a ploy in the grand scheme to make us all serfs to an elite ruling class of lords.

    and we're too busy reading people magazine and watching american idol and "dancing with the stars" to even notice its happening.

    the last stages of a nation are complacency, dependancy, and then bondage.

    which of those 3 are we in now? you tell me..
  • Middle Class
    I don't think even the government has a clear definition!
  • Being left out in the cold...
    The millionaire class is really steamed about being relegated to the background, aren't they? Sorry, Neal.

    But when it comes to sensible economic policy, the "achievers," the "investors," or whatever other self-serving label you come up with for the rich just _aren't that important_.

    The middle class is what matters, and that's where the relief and assistance are targeted. The grownups are in charge now, so quit whining like spoiled babies.
  • Middle Class
    What exactly do you define as "middle class", Neal? My wife and I have a combined income of just over 200K and I consider myself "middle class". We also invest...well, I used to. Kinda riding this storm out. I keep hearing this "rich", "middle class", "poor", the crackpot version "working poor", etc., and it seems everyone has their own definition of the class system. I'm also a Fairtax supporter. Keep up the good work, Neal.

    Kevin
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