Saturday, December 29, 2012

Tax rich

The current argument over income tax has an obvious contradiction which must be cleared up before any further action is taken. One group says that based on fairness the rich should pay more and they want to raise the top rate from the current 35% to what is was before the Bush tax cuts, 39.6%. This same group says the rich only pay 15% since most of their income is unearned, that is, it comes from capital gains. Logic tells me that if your goal is to have the rich pay more you would raise the capital gains rate which is currently at a low of 15%.

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