MoveOn.Org commissioned this cartoon to call attention to one of the worst tax injustices of all time … the infamous Hedge Fund Loophole. It allows a highly privileged group of Wall Street traders to earn over $1 Billion a year, yet pay as little as 15% on the their federal income tax. What does the country get back in return for this extra generous tax break?
The answer is ABSOLUTELY NOTHING! Hedge fund traders do not create jobs, build factories, extend credit to growing businesses, fund new energy development, or confer any economic benefit to the country whatsoever. They do, however, fight like hell to keep their tax privileges intact.
Consider this: If you are a hedge fund trader earning in excess of $1 billion a year, the difference between a capital gains tax of 15% versus the top ordinary income tax rate of 35% amounts to $200 million a year. With that kind of money at stake, it is easy to buy off an army of politicians … and still have tons of cash left in your pocket. Killing the tax break would add $14.75 billion over five years and $24 billion over 10 years to the federal treasury … and help lift the burden of spending deficits and taxes from the middle class.
Petition your Congressional representatives and demand an end to this tax injustice.
Sickening. Add to it the fact that the monied class uses all kinds of accounting tricks to avoid taxes altogether, and the picture becomes even more disturbing. But, as Mrs. Helmsley said, only the little people pay taxes.
ReplyDeleteMeanwhile, as Robert Borosage writes,
Congress is about to pass an additional $32 billion to pay for the war In Afghanistan. It will have overwhelming bipartisan support, with legislators eager to display their fealty to the troops in an election year.
At the same time, the Congress is struggling with a $23 billion bill to forestall the layoff of nearly 300,000 teachers next year, championed by Sen. Tom Harkin and Rep. George Miller. This faces a Republican filibuster and the opposition of many blue Dog Democrats, who argue that it shouldn't be considered emergency spending. (Harkin has now given up on passing it in the Senate directly. The only hope is that the House will pass it as part of the military supplemental and perhaps then the Senators will swallow it.)
What kind of country are we?
We're a country that likes it's government largess. Especially the wealthiest among us.
ReplyDeleteFunny how everyone thinks they deserve it while nobody else does though.
"What kind of country are we?"
ReplyDeleteSame as we always were.
Expansionist and eager to wage war in creation and defense of American empire.
Next.
I'm afraid you're right and I think we're in love with feudalism as well. I mean it's good to be the King and it ain't bad to be the Baron either.
ReplyDeleteAwesome post! Thanks a lot for sharing this amazing post!
ReplyDelete