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Groups who advocated for the IRS to prepare tax returns sure look foolish these days: http://t.co/oKvpIofu7Y
May 13, 2013 06:30 PM
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"We don't need the federal government mandating additional taxes..." -@MarshaBlackburn on MFA: http://t.co/lAuLJtr5t3 #NoNetTax
May 13, 2013 06:00 PM
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Health insurers and businesses are already feeling the iron-clad grip of regulations in #Obamacare: http://t.co/J6dfnKqFYZ
May 13, 2013 05:30 PM
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Virginia Governor Bob McDonnell Signs Largest Tax Hike in Virginia History into Law http://t.co/Qd6KOFfaPv
May 13, 2013 03:46 PM
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Under #Obamacare, mothers have had a tougher time purchasing non-prescription, over-the-counter medicine: http://t.co/dJuaGAT9LE
May 13, 2013 02:01 PM
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9 out of 20 #Obamacare tax hikes have not even been implemented yet: http://t.co/opFkyf1guJ
May 13, 2013 01:30 PM
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.@GroverNorquist on MFA: "[The Senate] didn't ask all of the questions that needed to be asked": http://t.co/wXfkIR2Ca9 #NoNetTax
May 13, 2013 01:01 PM
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"When architects of #Obamacare are worried about it creating a trainwreck, you know something's gone terribly wrong": http://t.co/J6dfnKqFYZ
May 13, 2013 12:30 PM
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Conservative and Free Market Groups Applaud Move to Delay a Vote on Gina McCarthy: http://t.co/lNQYmJAB12 #EPA
May 13, 2013 12:02 PM
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The #Obamacare train wreck will derail the American economy: http://t.co/opFkyf1guJ
May 13, 2013 11:30 AM
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More Marginal Tax Rate Hikes
On Tap This Week from Congress
Just when you thought that the Democrat Congress couldn't do a worse job getting the economy back on track, this week the U.S. House will be serving up two new marginal rate tax hikes, according to published reports:
The first is a capital gains tax hike on investment partnership managers. Typically, managers of investment partnerships have a contractual right to 20 percent of the profits they make for the partnership. These profits are capital gains, and are taxed as such. Reports indicate that the House wants to raise the tax rate for these capital gains from today's 15 percent all the way up to 43.4 percent--nearly a 300 percent increase! I'll have more on the implications of this later in the week. As a sneak preview, let's just say that the investment managers should be doing just fine, but those who invest with them (defined benefit pension plans, charitable trusts, and universities, mostly) won't be.
The second marginal tax rate hike is on Subchapter S-corporations. These businesses are structured so that business profits are paid by the owners on their individual tax forms. The House bill would add another layer of taxes to these profits--namely the (soon to be) 3.8 percent Medicare tax. As a result, the top rate on S-corporations will rise from 35 percent today to 43.4 percent. This means less capital available to invest in plant and equipment, create jobs, etc.
Needless to say, marginal income tax rate hikes are singularly-stupid. They are especially dumb when all they are being used for is to pay for the tax code we already have. But that's what's on deck this week.
Posted by Ryan Ellis 
on Monday, May 17, 2010 5:39 PM EDT
on Monday, May 17, 2010 5:39 PM EDTTo follow Ryan Ellis's RSS feed click here. To follow them on Twitter, their handle is @ryanlellis
