Disguised as a “fix” for the Alternative Minimum Tax, the Dems have proposed a 4% surcharge on anyone making over $150k ($200k for couples). This coupled with the decision to let the tax cuts that spurred our economy to new records expire (an easy way to raise taxes) means the top bracket for individuals will become 44% in the US. For comparison, the average for developed countries is 35.7%.
Now some of you may say that such wealthy people can afford to give us all their money. Unfortunately, small businesses owners and farmers, often pay taxes as individuals not as businesses (like corporations do). So if you’re out to screw the rich – remember that when the family loses their farm, or the small business down the street has slow customer service because they had to lay off some help to pay the new 9% of taxes.
And it’s actually even worse: the 4% increase is a surcharge not a rate hike. The difference? Surcharges are applied before tax deductions. Got a kid in college? Paying all that mortgage interest? Gave a large donation to Katrina relief? Doesn’t matter… 4% on it ALL.
So on top of punishing the successful, we’re now going to take away their incentive to give money to charity? Though, I guess if we just take even more of their money away it won’t matter if they give to charity ’cause the government can fill that void as well. Well at least until they rich take their money & income to another country to avoid the taxes. 50%, 70%, even 100% of nothing is way less that 35% of something.