The Democrats and taxing the rich

The campaign ads display Hillabama pulling out all the old, old class rhetoric from the 60s--I guess they don't realize all those spoiled, struggling boomers the lefties romanced back then are now well-heeled 60 year olds. They were in control of Congress for so many years, I wonder why all of society's problems weren't fixed? Yes, they will stop those tax breaks for the rich. Drum roll. Women faint. Men swoon. Businesses and corporations leave for friendlier climes.

The Democrats created the Alternative Minimum Tax in 1969, but due to bipartisan neglect neither party has fixed it. It's a mess of unintended consequences--known as the "stealth tax." It was originally set up to punish 19,000 very successful, wealthy Americans who weren't paying taxes (millions at the bottom don't pay taxes because people at the top pay for them, but that's OK--that's fair). The AMT was not set up to account for inflation, so now it scams many who are not even close to wealthy by today's standards, and if you're subject to it, you can't deduct your state and local taxes. The AMT wasn't even set up to get revenue--it was some bureaucrat's idea of "fair," and it never even achieved that! It's a boon for the tax preparers, though; that's one industry our government constantly helps out--compliance costs the US taxpayer millions and millions and many hours that could be used productively in something else. Now with the bipartisan ennui, they are raking in so much money, they're afraid to drop it, so they make temporary fixes and patches. Twenty six million Americans will be snagged by the AMT for 2008 according to today's paper*, up from 4 million for 2007 and 2006.

And how about that wonderful, bipartisan stimulus package? Those who contribute the most to the economy and pay the most taxes will get nothing back. The $112 billion in "stimulus" is phased out for individuals paying taxes on incomes over $75,000, or jointly on $150,000. How's that for fair?

Nor will there be "debt relief" for those who were sensible and played by the sound rules of 20% down, fixed rate mortgages, and a budgeted percentage of their income for housing. They'll be bailing out the neighbors who went for no money down, false documents and the adjusted rates, which if they had read the contract, always go up. They have no choice but to send more money to Washington, because if they don't, the neighborhood will go. What Suckers! But Hillabama to the rescue. They'll fix it--by making the honest guy pay.

*Although I don't have a link to the article I read on the AMT, here is one very similar.

obama