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Thursday, September 23, 2010

Is it just one voice, or representative of quite a few?

Mr. Todd Henderson has received quite bit of backlash from the web community on his post. He should have done the basic math and calculated exactly the amount by which his taxes would have increased. Railing about an issue without doing the homework- is this what he expects out of his students?
Michael Birck, one of the founders and former CEO of Tellabs once talked about the "entitlement" culture that was becoming pervasive. Mr. Henderson seems to be another data point in that set. Is his lament representing just one person, or is he speaking for a sizable chink of the "poor" rich?



We are the Super Rich - Grasping Reality with Both Hands: "We are the Super Rich - Truth on the Market: Posted on September 15, 2010

The rhetoric in Washington about taxes is about millionaires and the super rich, but the relevant dividing line between millionaires and the middle class is pegged at family income of $250,000. (I’m not a math professor, but last time I checked $250,000 is less than $1 million.) That makes me super rich and subject to a big tax hike if the president has his way.

I’m the president’s neighbor in Chicago, but we’ve never met. I wish we could, because I would introduce him to my family and our lifestyle, one he believes is capable of financing the vast expansion of government he is planning. A quick look at our family budget, which I will happily share with the White House, will show him that like many Americans, we are just getting by despite seeming to be rich. We aren’t.

I, like the president before me, am a law professor at the University of Chicago Law School, and my wife, like the first lady before her, works at the University of Chicago Hospitals, where she is a doctor who treats children with cancer. Our combined income exceeds the $250,000 threshold for the super rich (but not by that much), and the president plans on raising my taxes. After all, we can afford it, and the world we are now living in has that familiar Marxian tone of those who need take and those who can afford it pay. The problem is, we can’t afford it. Here is why.

The biggest expense for us is financing government. Last year, my wife and I paid nearly $100,000 in federal and state taxes, not even including sales and other taxes. This amount is so high because we can’t afford fancy accountants and lawyers to help us evade taxes and we are penalized by the tax code because we choose to be married and we both work outside the home. (If my wife and I divorced or were never married, the government would write us a check for tens of thousands of dollars. Talk about perverse incentives.).."

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