Just The Facts!

The Bush tax cuts should be allowed to expire for the top tax bracket. However It is misleading to consider them a “middleclass tax cut”.  Everyone, regardless of their income, including millionaires will get the “tax cut” on the first $250,000 of taxable income.  In the speeches about this policy, no one made that point nor was the point made that only the top two tax brackets would be allowed to expire.  Additionally, no one made the point that the “tax increase” for the highest income bracket was only 4.6%, less than a nickel for every dollar OVER $250,000 of Adjusted Gross Income.  The biggest cause of inequality that needs addressing is the tax on dividends and capital gains.  Neither of these forms of income should be taxed any differently than wages or salary.  Too often, owners of “S” corporations, CEOs, and executives game the system by receiving compensation in forms other than wages in order to avoid payroll taxes as well as to have their income taxed at lower rates.  The other cause of inequality is the various tax-avoidance games where an executive will work for $1.00 a year but will receive advances called loans against future stock or dividend value, again to avoid both payroll and income taxes. The IRS needs to redefine wages and salary to include all compensation, regardless of form received for one’s job performance.  Finally, there is the need to point out that continuing the Bush tax cuts when they expire for all but the top tax bracket still benefits millionaires far more than any other taxpayers.  Of course, Republicans will continue to lie about this and claim that these policies will hurt “job creators” forgetting that it was their candidate, Romney who was heard complimenting the Clinton economic policies.