Saturday, January 28, 2012
Not to be overly political, but ...
I do not agree with lower tax rates for dividends and capital gains. My feeling as a voter and a citizen is that it is all income, and it should be taxed as such. And, of course, while there is a ceiling for tax rates, there is also a floor.
Thus, rates of 10/20/30% with fewer exemptions in the top rate ought to do it. The lowest rate should begin above the poverty level, and exemptions should be greatest at the lowest level. Of course, that would give some people lower rates on dividends/cap gains, while it would not discourage investment at any level. Additionally, the cap on FICA should be lifted to $250K, and both Social Security and, especially, Medicare should be means tested in terms of payout.
That should about do it. And, I can't imagine the arguments against it.