To the editor:
Got to thinking about the position that President Obama is taking on raising taxes on the top 2 percent, those making over $250,000. That is adjusted gross income. In other words, that is the amount on which an individual would pay tax. That means that the family would deduct the interest on both of their homes, medical expenses, charities, home office, telephones for business, country club dues when used to entertain clients, half of their entertainment meals, etc. What was left would be the $250,000. Total income could easily be $400,000-plus. You also have to remember that stock dividends are not taxed.
When I divided the number $250,000 by 12, I came to the realization that it equals what a person making $10/hour makes in a year, $20,830. If the tax rate increase should go into effect, then the 3 percent increase would cost the lowest end high earner, i.e., $250,000, $625/month.
Would a person pulling down $20,000 a month, even be aware that they didn’t have an extra $600 to spend each month?
Makes one wonder what these people in Congress can be seriously and honestly thinking about: pride, bullheadedness, or concern that their big donors will not fund their next trip to Washington.