Big Gain for Rich Seen in Tax Cuts for Investments (HUGE, huge numbers)

[Inland]

(Remember, the cut in taxes on dividends and cap gains is different from, and in addition to, the lowering of the brackets on all income and the elimination of the estate tax)


http://www.nytimes.com/2006/04/05/business/05tax.html

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As Congress debates whether to make the Bush tax cuts permanent, The Times analyzed I.R.S. figures for 2003, the latest year available and the first that reflected the tax cuts for income from dividends and from the sale of stock and other assets, known as capital gains.

The analysis found the following:

¶Among taxpayers with incomes greater than $10 million, the amount by which their investment tax bill was reduced averaged about $500,000 in 2003, and total tax savings, which included the two Bush tax cuts on compensation, nearly doubled, to slightly more than $1 million.

¶These taxpayers, whose average income was $26 million, paid about the same share of their income in income taxes as those making $200,000 to $500,000 because of the lowered rates on investment income.

¶Americans with annual incomes of $1 million or more, about one-tenth of 1 percent all taxpayers, reaped 43 percent of all the savings on investment taxes in 2003. The savings for these taxpayers averaged about $41,400 each. By comparison, these same Americans received less than 10 percent of the savings from the other Bush tax cuts, which applied primarily to wages, though that share is expected to grow in coming years.

¶The savings from the investment tax cuts are expected to be larger in subsequent years because of gains in the stock market.

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[Atman]

1. This is money TAKEN OUT OF OUR ECONOMY

The rich, contrary to popular belief, DO NOT trickle down on the rest of us. They piss on us, but they don't trickle down. They don't buy new 'fridges at the local appliance store. They obviously don't build new factories, they just buy old factories, shut 'em down and ship the jobs oversees. The money is shuffled around brokerage firms in order to hide it from any form of taxation at all, therefore talking out of "circulation" in any sort of way which might actually help the economy.

Bush's tax cuts are a travesty.

But what will also be a travesty is the way the Democratic Party is going to be hammered like loose floorboard if we aren't prepared to deal with the GOP "tax-raising liberal!" cries when we take over the government in 2006. Will democrats have the balls to do what is necessary? Or will they cower under their newly re-captured desks for fear of pissing of voters prior to 2008. As if voters could be any more pissed off.

[wicket]

5. It's exactly why Poppy Bush called it "VooDoo Economics"

They certainly are a travesty :grr:

[lonestarnot]

2. And there were some who said "this isn't a class war." Well to them I say

fuck you.

[madokie]

3. to them I say kiss my ass you lying toad

[lonestarnot]

6. I love you madokie!

:toast:

[madokie]

11. madokie smiles, This is a place of love, boundless love

^5 :toast: don't be telling everybody my wife might find out.

[lonestarnot]

12. I'm sure your wife won't mind that you are loved!

:grouphug:

[madokie]

17. actually she love's that i'm loved ;-), not a jealous bone in her body

If luck has anything to do with it, here sets the luckiest man in the world. Love has to be the nicest feeling of feelings.:loveya:

[lonestarnot]

19. It is certainly the bestest of feelings....and don't correct my grammar!

heh

[madokie]

22. Grammar? I missed that day ;-)

peace

[lonestarnot]

24. Peace to you and yours madokie!

[lonestarnot]

20. kick

[Inland]

23. There's no love in tax policy threads!!!!!!!

There's no crying in baseball, and no love in tax policy!!!!!!

[wordpix]

8. to them I say, can't wait to liquidate your assets when you're found guilt

y in the courts.

[Inland]

10. It's a class war, but only one side is fighting.

The effects of these cuts, of course, were well known to people who have accountants and lobbyists. It's why they wanted them so badly.

The only surprise is the fucking SIZE of the dollar amounts! Save half a million in taxes on a ten million dollar income----holy cow, what taxes are left to pay?

And it's only ONE aspect of the Bush tax cuts. The cumulative effect is going to be even bigger.

[lonestarnot]

14. The only comfort I find in all of this is that all of those dollars they

are stealing are going to amount to a hill of beans when they are done printing all of it.

[salin]

4. and yet a growing number of middle class folks,

due to increased state and local taxes to make up the difference in fed spending being sent back to states, actually pay as much or MORE than before the bushco tax cuts were put into place.

[TalkingDog]

9. Don't you mean middle class folks who are becoming the poverty stricken?

I'd love to see some numbers on the growth of the underclass and how much the middle class has shrunk.

[salin]

16. Those numbers would be interesting - especially if debt levels

was included as the use of credit and double/triple re-fi I think seriously hides the level of growing impoverishment.

[MadHound]

18. Yup, the budget is going to be balanced on the back of the middle class

And when that money proves inadequate, program after governmental program will be slashed and eliminated. All that is except for the war machine, which is where a vast majority of our money is going.

Of course this is going to ruin our country, but the rich and well off don't care, their attitude is that their money will protect them. However, they are forgetting their history. The middle class is the largest stabilizing factor in any society, they are the buffer between the rich and the poor. When the middle class becomes poor is when revolutions occurr, usually violent ones directed at the wealthy. When you've got nothing, you've nothing left to lose.

Hopefully people wake up before it is too late, otherwise we're all in for a world of pain.

[wordpix]

7. and yet, these same despicable repukes send kids to war and pay them $18K

per year if they're lucky to get that much to put their lives and limbs on the line

[lonestarnot]

15. Next month they will arrange to pay them in bean piles.

[Inland]

13. Let me add a comment for the "tax cut for investments" vocab

Capital gains are realized on the sale of a stock.

A capital gains tax is a tax on capital gains.

Ergo, it's a tax on the sale of a stock. Not a tax on investment.

Cutting taxes on capital gains are an incentive to sell, not an incentive to buy and invest.

People who made a decision to buy a stock are getting a windfall to sell it and buy a kilo of cocaine.

If we wanted to give an incentive to invest, we would allow a deduction for purchases from IPOs. But that wouldn't give a windfall to the rich who want to cash out and eat their investments. It's all fucked up.

[lonestarnot]

21. Kilo of cocaine? Not... Kilo of manuere.