110th Congress underway
<a href="http://seattlepi.nwsource.com/local/298510_cantwell05.html">Great move.</a>
The Democrat led House pushes a Republican co-sponsored bill to deduct state sales tax from federal taxes. A tax cut that actually helps the lower class, and shows signs of party compromise. (Though it does increase the federal deficit. I suppose we should put the capital gains tax back to 28% next.)
Capital gains tax is lower than income tax. Always has been; except for a brief stint in '77 when the 28% number was created to equate with the _lowest_ tax bracket for federal income taxes. Getting the capital gains tax percentage on income has always been a reward.
"It's such a struggle to get the 8% annual return on that one mil. _and_ the government's going to take a 15% cut of that! Heavens! How will I manage on $68,000 a year?"
One exemption: everyone gets to exempt their first $40,000.
As our friend Steve Forbes has shown us, this ain't gonna happen. Until that time, we should restore the Capital Gains tax rates to pre-2001 levels (you know, that time when we had the stock market bubble?).
Not sure how the Capital Gains tax rate acts as a brake on investing. It's still the best game in town, even if you had to hand back 50%.
here here!
In most places, this is a comfortable, liveable wage, even for families with children, with room for 401K donation and some investing or saving. And for those who make less, at least it's all cash-in-hand.
Basic necessities (and a little more) shouldn't be taxed. Luxuries should be taxed.