Not all dollars are the same- to the tax woman

The WSJ reported today that Sen. Obama provided more details about his tax plan. Specifically,
Sen. Obama plans "to raise tax rates on capital gains and dividend income from 15% to 20% for individuals and families making more than $200,000 and $250,000, respectively." He also plans to "levy payroll taxes on earnings above $250,000 at a rate between 2% and 4%, though that increase wouldn't occur for at least a decade. Right now, payroll taxes, used to fund retirement benefits, are levied on income up to $102,000."

One of the biggest 'achievements' of the Congress and Bush administration over the past eight years has been the capping of taxes on capital gains and dividends, and eliminating the tax on gain from selling a home that is a primary residence (with some more conditions). So, a person who works hard and makes a $ that gets reported on a W-2 pays a lot more in taxes than a person who also makes a $ through dividends or capital gains (1099-DIV or 1099-B or other such form). Wage earners are being heavily burdened- especially those at the lower end of the pay scale. There is NO reason why payroll taxes should be capped - every dollar should be treated the same way. Similarly all income, irrespective of the source, should be taxed the same way, because the government provides services to all people.

It appears as if Sen. Obama, in order to appease Wall Street, is not willing to do what is fair and unprejudiced in the rigged world of taxation.

CEO Group - Corrupt, Egregious, and Odious Group

A Socialistic Solution to Protect "Capitalistic" Managers

Right after I had written a blog about corruption, I read the following in the Wall Street Journal, a.k.a. the Murdoch's Opinion Piece.

"Displaced-Worker Aid Is Proposed CEO Group Backs $22 Billion Package,Funded by Taxes By DEBORAH SOLOMON
July 30, 2008; Page A12
A policy paper commissioned by the chief executives of the nation's largest financial-services companies recommends a huge expansion in programs to assist workers displaced by international trade, with the $22 billion price tag financed through tax increases. The Financial Services Forum paper comes amid a growing backlash against global trade that has threatened to curtail U.S. trade agreements. The banking, investment and other CEOs who belong to the group have consistently cited protectionism as the leading threat to continued U.S. and global economic growth."

The Doha round of WTO talks collapsed yesterday because U.S., on the one hand and China and India on the other could not agree on a range of issues.
The CEOs, who have personally benefited greatly from trading and specifically from outsourcing, want to continue it and make it look like a win-win for everyone. However, to pull the wool over people's eyes, they want to the Government to provide aid to 'displaced workers'- an insulting phrase for people who have been fired. These are the same CEOs who got the dividend tax eliminated, got a cap on capital gains at 15%, and have also benefited from lower income tax rates- personal and corporate.
And now, they want to shift the burden for the problem they have created, to the public taxpayer, when the government is running a $500 Billion deficit next year. They are proposing funding this aid from taxes, while gleefully exploiting tax loopholes?
Business may not have any responsibility for creating employment, in which case it should come out and flatly say so. But using and discarding people like inanimate objects, and then couching it in slick language makes one sick.
A sad commentary on the business leaders.