Tuesday, September 14, 2010

Tax cuts

The Berkeley Daily Planet

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Tuesday September 14, 2010

Tax Cuts
The cuts enacted by President Bush are set to expire at the end of this year. Republicans, led by House Minority Leader John Boehner, have called for extending the $700 billion in tax breaks for the rich. Not being discussed in all of this are two crucial issues. One of them is how much those tax cuts cost us. Basically, all the income taxes that everyone in America paid in January and February of this year only went to cover interest on the money borrowed for the Bush tax cuts over the last decade. Just interest on those tax cuts 

The second issue not being discussed is that this top tax rate, the two that President Obama wants to have go back to the Clinton-era level, they cut in at a quarter-million dollars and about $400,000 of taxable income. In fact, we have a large number of people in this country now who are making multimillion-dollar annual incomes, and we’re not talking about a higher tax rate on them. We’re starting actually at a very low level. 

And the very highest-paid workers in the history of the world, hedge fund managers, at least twenty-five of whom made a billion dollars last year, pay a current tax rate of zero. The news media keeps saying 15 percent. They pay the 15 percent, when they cash out, which could be decades from now. None of that is on the table. 

Ted Rudow III,MA

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