Posted 5 years ago on Jan. 22, 2012, 12:14 p.m. EST by everyonechipsin
This content is user submitted and not an official statement
Both Romney and Gingrich are pushing "tax reform" that will exempt dividends and capital gains from federal income tax. There are some differences - Romney caps the exemption from tax at 200k of investment income and he also exempts interest (from bonds and bank accounts) from taxation up to 200k - but, in general, their proposals are quite similar.
So consider this. Joe the Plumber makes 80k and he works hard all year for that money. As an American citizen, he is asked to pay federal income tax on that income, in part to support the military which is defending this country's interests around the world. It seems fair. Joe is doing OK and should chip his share of taxes for the defense of this country.
Now consider the fellow who has accumulated, say, 3 to 4 million dollars in savings. He can invest that money in stocks and bonds and make 150k a year in dividends and interest (that's a very conservative 3.75% return on $4 million), and under the GOP plan, he will be asked to pay NOTHING in federal tax. He will get to call himself an American citizen and not have to pay ANYTHING towards the defense of this country. If we asked him to pay taxes, some taxes, on his investment INCOME, it would not be taxing his money twice. His original $4 million remains untaxed. We would just ask him pay a small amount of taxes out of the 150k he makes every year. And consider that his savings will be growing, as well, assuming he doesn't spend all of his tax-free income every year, so as time goes by, the amount he has invested will be more than $4 million and so will his income.
Is it not reasonable to ask a fellow like this to pay SOME TAXES to help defend this country?
How can the GOP propose this kind of "tax reform" with no protest from American citizens? Their tax proposal looks less like policy and more like a scheme, a scheme to further enrich themselves and the rich people in this country. On just this point alone, it is hard to see how the GOP is representing anyone but the richest among us.