...that the health care legislation is designed to transfer wealth, the House version includes an income surtax on the "wealthy." Harry Reid's version calls for an increase in the Medicare payroll tax for those making over $250,000 per year. Either plan is clearly an attempt to transfer wealth. Increasing the payroll tax will of course cause employers to shift compensation to high income earners to stock options, so don't expect that to raise the revenue expected, as employees and employers alike work hard to dodge this new tax.
Further, this will open the door to using the payroll taxes for any darn purpose the legislature decides, there will be no end to the tax increases if this passes.
It makes me wonder what the margianl tax rates will look like in a few years. Come to think of it, this post deserves a link. One is on the way.
ReplyDeleteSo who remembers the 50% tax bracket from before the Reagan tax changes?
ReplyDeleteAnyone want to bet the over/under on that rate by the time Obama, Reid, Pelosi, Levin, etc get done?
If you are any kind of successful businessperson, I think you are pretty much screwed. The manner in which these taxes will be implemented will hurt successful small businesses the worst.
ReplyDeleteKT, thanks for the link.
ReplyDelete