DEAR EDITOR:
There are loopholes that benefit most Americans who pay income
tax such as the tax free bonds, California tax free bonds, federal
tax free bonds, tax free municipal bonds, etc. And then there are
liberal loopholes that benefit wealthy millionaires.
DEAR EDITOR:
There are loopholes that benefit most Americans who pay income tax such as the tax free bonds, California tax free bonds, federal tax free bonds, tax free municipal bonds, etc. And then there are liberal loopholes that benefit wealthy millionaires. Example from the Wall Street Journal, July 13, 2004, Reviews and Outlook.
Quote: “Senator Edwards talks about the need to provide health care for all, but that didn’t stop him from using a clever tax dodge to avoid paying $591,000 into the Medicare System. While making his fortune as a trial lawyer in 1995, he formed what is known as a “subchapter S” corporation, with himself as the sole shareholder.
Instead of taking his $26.9 million in earnings directly in the following four years, he paid himself a salary of $360’000 a year and took the rest as corporate dividends. Since salary is subject to 2.9 percent Medicare tax but dividends aren’t, that meant he shielded more than 90 percent of his income. That’s not necessarily illegal, but dodging such a large chunk of employment tax skates perilously close to the line.
“So when John Kerry and John Edwards say that they want to tax the wealthiest Americans, let’s be clear about what they really mean. They want to tax the most productive people at higher marginal rates and close loopholes for corporations, while they themselves dodge taxes by exploiting loopholes they plan to preserve.
“Mr. Edwards is right that there really are two Americans. The people who work for their money and want to keep more of their own paychecks. And the wealthy politicians who want to raise taxes on the middle class, secure in the knowledge that they won’t have to pay.”
In conclusion don’t believe all the propaganda that they, the liberal Democrat politicians, promise the American people.
Joe Sciabica,
Morgan Hill
Submitted Thursday,
July 22 to the Dispatch.
