Obama wants to tax muni bonds

[DFWAg]

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[Mr. Deez]

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[ProdigalHorn]

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[Michtex]

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[texas_ex2000]

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[DFWAg]

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[mcbrett]

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[ProdigalHorn]

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[DFWAg]

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[gecko]

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[mcbrett]

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[Bronco]

I think I might have to help my buddy Mcbrett here. I don't know if this is what he is actually trying to say or not, but i think it is.

I could see an argument that doesn't change any of the tax percentages we have now. Be it income tax or capital gains or muni bond interest or whatever. But that at some total income level for an individual, regardless of how that income is generated, they pay a flat tax rate on those dollars of say 25-30%. Obviously this is a change in the tax code. But when Buffet prepares his taxes, he gets to use every single tax advantage that exists in the tax code to minimize his taxable income but for every dollar that goes over the limit, he gets taxed at 30%. lets say Buffet has all capital gains income for a year and his total income for the year is $20M. I would set the limit at a minimum of $1M. So for the first $1M of income, Buffet pays 15% on it. The same as Joe Blow. For the amounts over he pays 30%. His tax bill for $20M would be $150K on the first M and then $5.7M on the next $19M for a total due of $5,850K.

This would not change taxes on 99% of the people out there and they can continue to invest in municipal bonds or whatever and enjoy the tax benefits of those investments. I do not think this type of change would adversely affect investment as the vast majority of investors don't have over $1M a year in income and those making less than $1M make up the vast majority of those that invest.

For sure, this change would not generate even 1% of the additional revenue needed to balance our budget, but I could live with it if it meant that BO would stop talking about it like it is some sort of panacea. It won't materially change our country's financial position at all. And the dumb SOB BO knows it, but he keeps touting it to win votes. He is horrible.

 

[DFWAg]

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