Thursday, July 14, 2011

My money comes and goes…

…and rolls and goes and flows
Through the holes in the pockets of my clothes…

Wonder where it ends up?
New data released by the IRS reveals that, over a period of 12 years, tax rates for the richest 400 Americans were effectively cut in half. In 1995, the richest 400 Americans paid, on average, 29.93% of their income in federal taxes. In 2007, the last year for which the IRS has released data, the richest 400 Americans paid just 16.63%.

In 1995, just 12 of the 400 richest Americans paid an effective tax rat of between zero and 15%. By 2007, that number skyrocketed to over 150. The massive reduction is due to both Bush-era tax reductions for the wealthy and the aggressive exploitation of tax dodges and shelters.
Damn right it's a class war, and "don't retreat, reload" is starting to sound like good, if still figurative, advice.

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Anonymous Terry Parkhurst said...

Nichols Kristoff, columnist with the New York Times, who is syndicated in the Seattle Times, made similar points, in a recent editorial.

Thing is, the wealthy avoid taxes by parts of the tax code that allow same. One example, Kristoff mentioned, is the fact that when hedge fund managers make a profit, that is not taxed as personal income; it is rolled into a package that disallows same.

Of course, the theory is that such investment helps us all. But the line which should greet such nonsense is, "How does that work?"

As Hank Paulson mentioned - repeatedly - in his book, On The Brink," we all bailed them out, via the Department of Treasury, Congress and the Federal Reserve, a multitude of times, in 2008. It would seem that now is the time to collect on that debt and change the tax code.

8:42 PM  

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