AMT, Capitol Gains, and Hedge Fund Managers
It seems the latest Congressional debate is over the Alternative Minimum Tax. When originally enacted, the AMT affected a small portion of the wealthiest taxpayers — forcing them to pay some taxes instead of skating by on loopholes. Now, unless something is done, the AMT will affect the average tax payer in a big way.
But what is worse than the average tax payer getting hit with the highest tax bracket? Perhaps it’s hedge fund managers buying their way out of owing a fair tax burden by donating to carefully chosen political campaign funds. Currently, these hedge fund managers pay the 15% capital gains tax rate instead of the near 30% regular tax rate. When House Democrats proposed taxing their income as income (30%) rather than Capitol Gains (15%), the lobbyists responded by donating to Senate (Democratic) accounts. That left Harry Reid backtracking on the proposed tax hike. SHAMELESS. SHAMELESS. SHAMELESS. Meanwhile, the average working joe can fork over nearly a third of his salary to the government. Democrats, this is a losing issue for you. Don’t sell yourselves out to the highest bidder. Protect the little guy. That’s what your history has been, and where the future leads.