Proposed tax changes favor investment over pay

Wednesday, November 9, 2005

Proposed tax changes favor investment over pay

Five examples show effects on income, though Congress, Bush will alter plans.

By MARY DEIBEL
Scripps Howard News Service


(snip)

enior tax analyst Bob Scharin of RIA's Practical Tax Strategies, a professional tax journal, has sketched contours of how the two plans could affect individuals by tax status, income and investment sources

SCENARIO ONE

Customer-service associate (single, no children).
Income: $30,000 in wages.
Write-offs: $3,000 deductible contribution to an Individual Retirement Account and the standard deduction with no home mortgage and minimal charitable contributions.
Current tax bill: $2,455
Simplified Income Tax Plan: $2,850
"Growth and Investment": $2,850

SCENARIO TWO

Married full-time computer programmer and part-time graphic artist (no children).
Income: $150,000 combined wages; $1,000 interest income, $1,000 dividends and $5,000 long-term capital gains.
Itemized deductions: $18,000 mortgage interest (with home principal below the regional cap); $15,000 mortgage interest on vacation house, $2,000 home-equity loan interest, $15,000 real-estate taxes, $10,000 state and local income taxes, $5,000 miscellaneous deductions that exceed 2 percent of income and $4,000 charitable gifts.
Current tax bill: $15,406
Simplified Income Tax Plan: $23,643
"Growth and Investment": $24,321

SCENARIO THREE

Married full-time teacher and lawyer (two children).
Income: $150,000 wages; $1,000 interest income; $1,000 dividends; $5,000 long-term capital gains and $6,000 contribution to employer-provided before-tax flexible spending accounts.
Itemized deductions: $10,000 mortgage interest (with mortgage below the regional cap), $3,000 real-estate taxes; $6,000 state income taxes and $4,000 charitable contributions.
Current tax bill: $21,568
Simplified Income Tax Plan: $21,843
"Growth and Investment": $22,521

SCENARIO FOUR

Married executive and non-employed spouse (two children).
Income: $500,000 wages; $10,000 interest income, $20,000 dividends and $200,000 capital gains.
Itemized deductions: $50,000 mortgage interest on an $800,000 home loan in a region where mortgages would be capped at $400,000 debt; $20,000 real estate taxes, and $35,000 charitable contributions.
Current tax bill: $155,645
Simplified Income Tax Plan: $142,748
"Growth and Investment": $151,140

SCENARIO FIVE

Divorced lawyer (no children).
Income: $250,000 wages; $150,000 interest income and $500,000 capital gains.
Itemized deductions: $20,000 mortgage interest (loan principal below regional cap), $6,000 real-estate taxes; $40,000 state income tax and $50,000 charitable contributions.
Current tax bill: $179,174
Simplified Income Tax Plan: $142,683
"Growth and Investment": $163,350

http://www.ocregister.com/ocregister/money/yourworld/article_756707.php

AKA ownership of the worker

Ownership of the worker USED to be called SLAVERY. Now we just call it "The Ownership Society."

Maybe that is what we are being driven to. The point where we can no longer maintain even basic survival for ourselves, and then the option is given for us to sell ourselves into slavery, voluntarily, in return that our basic survival needs are required to be met by our owners.

Nahhh, couldn't be that simple, could it?? Am I just a little too cynical here, or is this a possible revelation as to the actual agenda of these neo-con motherfuckers?

And tell me, once again, that Bush's tax cuts help the poor and not the wealthy. I need a good laugh.

and it confirms what I suspected... that people like me who live in areas where home costs and state and local taxes are off the charts will be paying through the nose. I had estimated that I would owe an additional $10,000 to the IRS and I think that might not be far off

NY, CA, IL (perhaps more, I don't have enough knowledge) that just happened to be blue but also that are the major economic engine, that are donor states.