White House Flunks TAX Math -
I get it Mr. President! So you want me to work a little harder to earn an additional $1,000 and pay marginal (not average) rate of 38%.
Then, I wanting to save for retirement, invest the $620 left after taxes. I earn 5% on my investment, so I earn $31 dollars in dividends. Right now, there's a 15% tax of dividend income, i would pay $31x15% = $4.65 in taxes. Since I already paid tax on my savings, this raises the tax rate on my $1000 EARNED income to 38.46%
Now, Mr. President, you want me to pay the same 38% tax rate on my dividend income. So now my tax on my dividends is $11.78 ($31x 38% = 11.78).
My tax rate on the $1000 EARNED income - the original source of the savings that i invested to earn UNEARNED INCOME now rises to 39.17%
I think a 39.17% marginal rate on dividends is higher than the rate paid by Mr. Buffet's secretary.
So how will this "millionaires Tax" help the Economy ? It won't !
From Econ. 101 we know that Savings=Investment. Raising the tax rate on savings will reduce the pool of funds for investment. And, we know that permanent job creation in the PRIVATE SECTOR flows from investment, (including R&D) The PRESIDENT's tax plan will reduce the likelihood of Private Sector joib growth
So the President wants to pay foir his Job Creation program with an tax plan that ill choke off the oxygen supply to job creation .. Makes sense to me... How bout to You ?
cmr
9.28.2001
2 all my friends who r HOMEOWNERS
Re-Finance your mortgage if you can.. rates are at 50 year lows ... banks are stingy in their lending, but if you can Re-Fi, do IT
Re-Fi is Good for YOU & Good for the US Economy
Write to your Congress person and Senators & state officials, ask why Washington is not doing more for homeowners, as this economy will not get going without housing gettin' fixed
Why Re-Fis would help:
1. CBO estimates that 3.8% of all refinancing prevent a default that would have otherwise occurred.
2. The homeowner is more likely to spend the money saved than the investor who would otherwise have received the money. 3. Christopher Mayer of Columbia University, a big refi fan, notes: "About one-half of all outstanding bonds are owned by overseas investors ($800 billion), or various government entities including the Government Sponsored Enterprises ($600 billion), Treasury and the Fed ($1.2 trillion.) Many more are owned by banks ($1.0 trillion) who already have excess reserves, so the impact of these reductions on their 'spending' or lending is also likely small. So the net impact on macro stimulus is likely large."
