Congressional Misinformation or Tax Fairness

The song and dance Congress sold you with a reduction of the capital gains tax offers this result; the high income earner kept $25,000.00 while the average income earner kept $125.00 in savings.

These tax savings originally intended to fund social security, medicare, medicaid, streets, bridges, etc......

Or maybe to just pay down that debt.

Let's look at one simple comparison of Capital Gains taxed at regular income rates vs.Capital gains taxed at the special reduced long term capital gain rate of 15%:



A. Adjusted Gross Income High Income Earner:

$1,500,000.00 adjusted gross income
Annual Capital Gains of $125,000
Capital Gains Taxed as Ordinary Income @ 35% = $43,750.00
Capital Gains @15% = $18,750.00
Tax Savings = $25,000.00


B. Adjusted Gross Income Average Income Earner:

$45,000.00 adjusted gross income
Annual Capital Gains of $5,000
Capital Gains Taxed as Ordinary Income @17.5% = $875.00
Capital Gains @15% = $750.00
Tax Savings =  $125.00

READ MORE HERE:

http://fconsmod.blogspot.com/2012/01/tax-fairness-gop-storytelling.html

The Republican Party owns this & other temporary tax breaks, with Democratic Party complicity by allowing the congressional budgets rules to pass both chambers being signed by President George W. Bush.