Congress refuses to make fatcats pay their share
Last night the Senate passed a bill to fix the Alternative Minimum Tax, which keeps vacuuming in non-rich households and hitting them with high taxes, an outcome Congress never intended. But it failed to replace the lost revenue and refused to tax venture-capital and hedge-fund partners at the rates everybody else pays. In other words, it made sure regular folks don't have to pay fat-cat rates. But it refused to make sure fat cats pay regular-folks rates. Charles Rangel, chairman of the House Ways & Means Committee, reportedly said he won't oppose removing a tax increase on venture- and hedge-fund managers in a bill that the House passed.
Much of the personal compensation that private-equity partners receive is taxed at the low (15 percent) capital-gains rate, even though it's not capital gains. Called "carried interest," it's employment income for coming to the office every day and doing a good job. The low long-term capital-gains tax is for people who actually put capital at risk in the economy. To the extent that private-equity managers aren't doing that, they shouldn't be given the capital-gain rate. They should pay income rates -- of up to 35 percent. This loophole costs the government billions that it should be getting from people who receive a sweetheart rate and can most afford to pay it. From Bloomberg:
Some Democrats said they would oppose scaling back the alternative minimum tax unless other taxes are raised to avoid adding to the federal deficit. House Majority Leader Steny Hoyer, a Maryland Democrat, said yesterday that he ``will not vote for an AMT patch that is not offset, even if I am the only member to do so.''
Comments
Please make clear that it wasn't "Congress" that refused to raise taxes on millionaires to pay for a tax cut for the middle class; it was 47 Republicans who voted against allowing the proposal to come to a vote.
Posted by: Patience | December 7, 2007 6:49 PM
Let's face the facts
the Liberals really know how to run the US economy.
They left with US with a budget surplus
and a National debt almost paid off
and it cost .90 cents for one EURO
in 2000.
After 7 years of Conservative leadership?
(well fellas... let's be real.)
A $9 Trillion national dollar debt!
It costs US $1.52 to pay for one EURO.
(That means if you're making 30 dollars an hour
it's really 15 dollars and hour in real terms.)
The Conservatives are like teenagers with their first credit card, totally irresponsible!
The tax cut for the rich is being paid for by the Communist Chinese and the Iraq war too.
the West Wing loves their Commies.
and why not?
they love to loan them cash!
We only owe the communist Chinese 5 or 6 trillion dollars!
I need the good smoke.
The good stuff they're smoking at the White House
because they are living some "trip out"
fantasies in beltway boys.
Honestly fellas
are there any real Conservatives left in
these here United States of America?
Posted by: steve real | December 7, 2007 11:54 PM
Democratic Party - Democratic Reform Party
As Democrats of the Democratic Party, we join together in seeking reform within the Democratic Party.
Many Democrats already know their elected representatives within the Democratic Party are no longer following in the time-honored footsteps laid down by the founding fathers of our great Nation.
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This is only the beginning of our problems as Democrats, for many of our elected representatives within the Democratic Party have clearly set their own agendas over the members of the Democratic Party, our Nation, and the American people. Overall, many of them no longer think of themselves as being our elected representatives, and now refer to themselves as leaders in the true form of tyrants.
Most Democrats already know their pleas are only being answered by repeated insult and injury by their elected representatives within the Democratic Party. Despite this, we as Democrats can restore control of the Democratic Party back to the party members. All we need to do is cut off donations to the local, state, and national headquarters of the Democratic Party, and to make sure the donations are made directly to worthy and honorable Democratic Party candidates.
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Posted by: Eric Pearson | October 12, 2009 10:56 AM