One of the current debates in Congress is whether or not to let “George Bush’s tax cuts for the rich” expire. Well, first of all, “tax cuts for the rich” is not an accurate description of the law. What is not generally mentioned is the fact that many of the “rich” are what is known as “S” Corporations. These are small businesses that are generally responsible for growing the economy by hiring new people. Because the total business income is reported on a personal income form, the person filing the form will look “rich” to the uninformed observer. What needs to be considered are the expenses against that income and the fact that this is business income and not someone’s personal income. If the tax cuts on these corporations are allowed to expire, people will lose their jobs and fewer people will be hired. That is not necessarily what you want to happen in a recession.<\/p>\n
Anyway, just for the record, let’s look at who pays taxes. The information that follows is taken from an article posted at Americans For Tax Reform<\/a> yesterday.<\/p>\n The thing to remember here is that the income tax is based on wages and salaries earned–not on accumulated wealth. Any increase in taxes is going to hit the middle class before it impacts anyone else. The very rich will find tax shelters to get around new taxes, and those of us in the middle class will pick up the slack. One of the characteristics of a socialist country is a very wealthy upper class, a very poor lower class, and an almost non-existent middle class. That is the direction our tax code is headed in.<\/p>\n","protected":false},"excerpt":{"rendered":" One of the current debates in Congress is whether or not to let “George Bush’s tax cuts for the rich” expire. Well, first of all, “tax cuts for the rich” is not an accurate description of the law. What is … Continue reading \n