Tuesday, December 15

Kind Votes for Tax Hikes and calls it a Tax Cut

James Wigderson at MacIver catches the duplicity:

When is a tax cut not a tax cut? How about when it is actually a tax increase?

The House of Representatives recently passed the Tax Extenders Act of 2009. The act extends over 30 tax breaks to individuals and businesses, $31 billion of tax relief a year

Congressman Ron Kind said of this bill, "This bill will provide much‐needed relief to families and businesses who are struggling in the current economic downturn and in a way that is fiscally responsible."

...

As a result, while Kagen and Kind are claiming that they just voted for tax cuts, the reality is that they voted for a net increase in taxes. They have used not increasing a host of taxes as an excuse to raise other taxes.

The Tax Extenders Act of 2009 increases taxes on private-equity firms that sell shares to the public to more than 30% instead of the usual15% rate. It also taxes carried interest that investment managers receive at the ordinary income rate of 35% instead of the lower capital gains rate of 15% they currently pay.

0 Comments: