taxes Archive

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Enjoy less money next year

Remember last summer when Republicans learned during the debt ceiling debacle that even when they have the same approximate goal as Democrats do, they can still hold the Dems’ testicles to the grindstone by playing chicken on any given issue that the Dems want to pass even slightly more than they might?

Yeah, well, so does John Boehner.

From the LA Times:

House Speaker John Boehner said Monday that he expects the House to vote down the payroll tax deal brokered by Senate Republicans and Democrats, and push for further negotiations in the year-end battle over extending the tax holiday.

[...]

The Senate bill continues the lower tax rate for two months, giving Congress more time to haggle over how to pay for a longer-term holiday.

The extension of the tax break is President Obama’s top legislative priority and a key element of his jobs plan. House Republicans have long been cool to the idea, but now say they are committed to passing a one-year extension and no less.

In case the fucked-upped-ness of this whole situation is too blatant to parse (like sitting in the front row of a Transformers movie), let me break it down for you: both the donks and the ‘phants want to extend the payroll tax cut that ultimately puts more money into your pocket and mine. The difference is, the donks only want to do so for two months while they figure some shit out before extending it even further at a later date. The ‘phants, on the other trunk, want to extend for a minimum of a year at this time — otherwise, they’ll torpedo the whole deal. This is equivalent to you and I both wanting to buy some Oreos, except you only want to eat a couple of them now until you can call your mom and see what you’re having for dinner, whereas I wanna eat the whole package right this second — dinner be damned! — and am willing to burn down the convenient store if you don’t go along with me.

Or something like that. (There’s also probably a logical way to extend this metaphor by bringing a glass of milk into the equation, but I worry Republicans would just think I was supporting the secret homosexual agenda and get distracted or something.)

Update by Tom: No, the most fucked up thing about this is that the Democrats compromised their way down to a two month extension, which the Republicans pretended to be satisfied with, only to decide that their extension’s expiration came too close to the State of the Union (which would allow Obama to point to them in the speech as the people who wanted to raise your taxes), and so now they’re being jackasses and torpedoing the whole thing entirely because they’re craven opportunists who don’t give a shit about the country.

Our political process is a joke.

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The Wall Street Journal says something reasonable about taxes!

I won’t quote you chapter and verse, but suffice it to say, the article demonstrates fairly definitinively why anyone who thinks a genuine flat tax is admirable is either ignorant of its ramifications or a rich jerk, while anyone who thinks it is achievable is an idiot.

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Because my post on haggling is becoming longer than I thought…

Please enjoy reading about a very rich man expressing some basic human decency, along with a healthy dose of common sense:

Warren Buffett, one of the richest men in the country, wants to pay more taxes and thinks his super-rich friends should too.

Buffett, who is estimated to be worth more than $47 billion, called on Congress to commit to “shared sacrifice” and raise taxes on people earning more than $1 million. Buffett said the rich are “coddled” by Congress “as if we were spotted owls or some other endangered species.”

“While the poor and middle class fight for us in Afghanistan, and while most Americans struggle to make ends meet, we mega-rich continue to get our extraordinary tax breaks,” Buffett wrote in a Sunday New York Times Op-ed.

Not only that, but “for the 8,000 people who made more than $10 million in 2009, Buffett suggested an even higher tax increase.”

Ahh, a billionaire with a conscience: now those really are an endangered species. Too bad they’re also avowed job killers, right?

In the July 23 Republican weekly remarks debt super-committee member Rep. Jeb Hensarling, R-Texas., said higher taxes could “destroy even more jobs.”

But Buffett disagrees. The third-richest man in America said he yet to meet a wealthy investor who would pass up a good investment because of the tax rate on potential gains. [emphasis my own]

“People invest to make money, and potential taxes have never scared them off,” Buffett wrote in his op-ed.

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If you weren’t pissed off enough about paying taxes this week…

…You’ll be heartened to hear that, for the 400 Americans with the highest adjusted gross incomes each year, ”Their average federal income tax rate was 17 percent, down from 26 percent in 1992.”

That said, the news isn’t all infuriating. According to the AP:

Obama wants the wealthy to pay so “the amount of taxes you pay isn’t determined by what kind of accountant you can afford.”

Eric Schoenberg says to sign him up for paying higher taxes. Schoenberg, who inherited money and has a healthy portfolio from his days as an investment banker, has joined a group of other wealthy Americans called United for a Fair Economy. Their goal: Raise taxes on rich people like themselves.

Shoenberg, who now teaches a business class at Columbia University, said his income is usually “north of half a million a year.” But 2009 was a bad year for investments, so his income dropped to a little over $200,000. His federal income tax bill was a little more than $2,000.

“I simply point out to people, `Do you think this is reasonable, that somebody in my circumstances should only be paying 1 percent of their income in tax?’” Schoenberg said.

When you feel like giving a rich guy a big hug for not being a total asshole for once, you know expectations have been lowered. But Shoenberg isn’t merely quick with his money clip: he’s quick with a funny quip, too (or at least a good burn).

After the always infuriating Sen. Orrin Hatch of Utah (the top Republican on the Senate Finance Committee), said “he has a solution for rich people who want to pay more in taxes”:

Write a check to the IRS. There’s nothing stopping you.

“There’s still time before the filing deadline for them to give Uncle Sam some more money,” Hatch said.

Schoenberg came back with:

“This voluntary idea clearly represents a mindset that basically pretends there’s no such things as collective goods that we produce,” Schoenberg said. “Are you going to let people volunteer to build the road system? Are you going to let them volunteer to pay for education?”

Now that’s what I call battening down the Hatch!

 

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Jackie Chan Makes the Case For a 100% Estate Tax

Yesterday’s ChannelNewsAsia:

Chan, who already willed half his fortune to charity, expressed Thursday that his son will get nothing after he passes away.

“If he is capable, he can make his own money.

“If he is not, then he will just be wasting my money,” said Chan.

And how did Jackie Chan make his money?

…Just like Paris Hilton.

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Mo’ money, mo’ taxes

When the Daily Show ran one of its standard clips montages the other week of FOX News personalities acting like fair and balanced dickheads — this time on the subject of “excessive” teacher pay vs. the relative austerity of the $250,000/year wage threshold — I smirked and sneered and was left-ily offended as usual. I took particular condescending umbrage at FOX Business Network contributor Tracy Byrnes’ comment (0:35 in) that “Two hundred and fifty thousand dollars is not rich. For a family of four sending kids to college, it actually is close to poverty.” (You gotta watch at least that part. Her tone is just so, I dunno, strangle-inducing. Or maybe it’s just that it’s so Joisy. Same dif, I guess.)

Anyway, as usual, when the show moved on, so did I.

Now fast forward to today. Which is to say, rewind to December 7 of last year. That’s when The Fiscal Times contributor Karen Hube wrote an article entitled “Down and Out on $250,000 a Year.” Three months later, here I sit seriously reevaluating my previous off-the-cuff musings. You should read the article in full, but the Brutish&Short of it is, while a family of four earning a quarter-of-a-million dollars a year is nowhere near impoverished status (sorry Ms. Byrnes), they ain’t exactly coming up platinum, either.

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