31 December 2012

The rich don't pay their taxes anyway

"You know what happens with this kind of tax the rich deal. That's why they've got accountants and lawyers. So the rich figure out ways not to pay, and you get stuck with the tab."
-- George W. Bush, Hudson, Wisconsin, 18 August 2004

The Republicans in Congress are set against raising taxes on the wealthy. It's like a religion to them.

I wonder if they ever consider the fact that the rich don't tend to pay much in taxes to begin with, because of all the loopholes.

As we learned during the presidential campaign season this year, Mitt Romney hides much of his fortune overseas, and paid 14.1 percent on his 2011 tax returns.

And zillionaire Warren Buffet once famously pointed out that he paid a higher tax rate than his secretary (17.7 percent on $46M compared to her 30 percent on $60K).

All things considered, I have a strong hunch that raising their tax rates when the Bush tax cuts expire won't bankrupt the rich, even though they'll owe more on their capital gains.

On the other hand, those of us who are not so fortunate will see cuts in our paychecks that could significantly impact how we live. And many of us are already struggling to make ends meet.

A Facebook acquaintance of mine, who happens to be disabled, recently shared his dismay with the fact that Romney has such a low tax rate, while he himself pays 28 percent on $36K per year. He pointed out that Romney has argued that he (Romney) pays plenty of income tax and will not pay a dollar more. I'm sure he won't, even when the Bush tax cuts expire. But my disabled friend has no such choice, lest he land in jail for tax evasion.

And, to add insult to injury, I'm sure the GOP would like to take a hatchet to this guy's disability benefits as well.

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