Senate Unveil Buffett Bill
Senate Democrats formally unveiled legislation Wednesday to ensure that all millionaires would pay a minimum federal tax of 30 percent.
For most people if you earn over $83,600 your marginal tax rate is 28% and anything over $174,400 is 33%. However, if you make your money from capital gains then you only pay 15%!
The legislation would apply to people earning more than $1 million a year, be it from salaries or investments or both. They could still take some deductions – such as for charitable giving – but after all is said and done, they must pay an effective tax rate of at least 30 percent of their income as federal taxes.
Sounds like a good start to me.
Buffett gives an excellent and short explanation of the Buffett rule. Even right-wing morons should be able to understand it:
http://money.cnn.com/video/news/2011/10/04/n_buffett_tax_plan.cnnmoney/
Just another stupid tax rule. Should just take total income, from all sources, subtract $50,000 and pay 20% of what’s left. No exceptions, exemptions, or deductions.
The 15% incentive is what sent me down the real estate professional road. I made no salary or wage but lived off gains; optimal long term gains. Expenses were deductions. I paid no taxes legitimately and lived pretty well. I went bust with Florida and lost it all. All while following the best investment counseling of the time, to uptake Bush’s et al tax incentives.