A Washington, DC press photographer vents about the political wranglings in our Nation's Capital.
AMT, Capitol Gains, and Hedge Fund Managers
Published on November 11, 2007 By joe-pro-photographer In Politics
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 When originally enacted, the AMT affected a small portion of the wealthiest taxpayers — forcing them to pay some taxes instead of skating by on loopholes.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.

Comments
on Nov 11, 2007
You hit the nail on the head, whoever donates to campaigns gets their cause championed.  That's how the bankruptcy legislation passed.  Those banks have deep pockets and there is no PAC for people who are just trying to keep their heads above water. 
on Nov 11, 2007
Well, Citibank certainly got their dues (and so did Countrywide) on the stock market the other day....in my job I see the PACs in full gear, and I must say, it is nerve wracking. I've even seen some, in their prime, WRITE the legislation for the staff that was later voted on. Geezeo peazo, how does the average joe compete?
on Nov 11, 2007
I've always wondered - are the politicians blackmailing big business, or is big business bribing the politicians? Maybe the Dems just wanted a campaign contribution, so they came up with this 'tax increase' that they weren't really going to do but needed as a threat.
on Nov 11, 2007
I've always wondered - are the politicians blackmailing big business, or is big business bribing the politicians?


yes
on Nov 13, 2007
The biggest irony of the AMT is that those who are going to get hit hardest are from states that normally vote for Democrats - who are even now proposing new tax increases.
on Nov 13, 2007
Yup, that's right. What a freakin' mess. I change my mind on this all the time. Flat tax? National Sales tax? What? I used to own a small retail store --- don't ask -- Sales tax was the biggest pain in the rear there was. Then, when I travel to poorer countries I think: we ain't got it so bad. That said, we ain't got it so good, either.