You won't find this in the MSM.
That’s right. They can avoid raising the nominal tax rate as high as it should be to reflect reality by taxing events that happened in the past. Think that’s unconstitutional? It should be but it isn’t. That was decided in 1983. (Anyway, who is paying any attention to the Constitution these days?)
That’s right. They can avoid raising the nominal tax rate as high as it should be to reflect reality by taxing events that happened in the past. Think that’s unconstitutional? It should be but it isn’t. That was decided in 1983. (Anyway, who is paying any attention to the Constitution these days?)
Here’s the Pelosi Plan: Nancy January 1, 2010 , Bush’s tax cuts before their scheduled expiration date in 2011. For high income earners. that will push the top rate on ordinary income from 35% to 39.6%, long term capital gains tax from 15% to 28%, plus the 5.4% healthcare tax on gross. Oh, and the estate tax will also return retroactively at its full rate. Bad news for Art Linkletter who had planned on dying in 2010 to beat the estate tax. Maybe he can die retroactively, too.
If you have any long term capital gains, it would be prudent to sell them before the end of this year, incurring the lower tax rate.
It could be worse. They could make the taxes retroactive to 2005. What’s to stop them?
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