Obama's "Grand Bargain" Delusion

[BlueStreak]

4. It is a shell game

Last edited Wed Nov 7, 2012, 05:09 PM - Edit history (1)

All that talk about millionaire tax rate going from 36 to 39 is bullshit. Almost none of the income is paid at that rate. That isn't how the 0.1% are escaping their fair share. They are evading their fair share by:

1) Loopholes that allow them to launder their income as cap gains, and pay only 15% on that. The Bush plan cut cap gains from 20% to 15%. Have you heard a single word about restoring cap gains to 20% ? I have not.

2) abusive shelters that avoid paying taxes altogether.

So what we need is this. Leave the damn 36% alone if you want. Nobody pays that anyway. We need:

a) Get rid of Carried Interest and other loopholes that allow the rich to abuse the cap gains rate

b) Put the cap gains rate at least back up to 20% or better yet, treat cap gains as ordinary income, just as freaking RONALD REAGAN did.

c) Institute an alternate minimum tax and other laws to remove the incentive for these Enron-style complex tax shelters.