About This Blog
The Fox News network exists to advance the interests of America's rich. As such, Fox has joined itself at the hip with the political party who only represents the interests of those same rich....the Republican Party.
Over the last three years it's been increasingly more difficult for the disinformers at Fox to make a convincing argument about why taxes should not be raised on the top 1%. Income, capital gains and dividend tax rates are currently at 60 year lows and the top 1% are the only folks over the last 20 years who have seen their income and wealth skyrocket.
Enter the "Buffett Rule."
Without a snowball's chance in hell of passing, President Obama has set forward a proposal he calls the Buffett Rule. Basically..... millionaires and billionaires who derive the majority of their income from capital gains shouldn't really being paying LESS of a tax rate on their income than the secretaries and janitors who work for them. Since 2003, capital gains tax rates have stood at 15% while those Americans filing jointly earning between $69,000 and $139,000....pay income tax rates of 25%.
This is obviously an unfair situation....Americans know it's unfair....and Fox News knows it's unfair. How, then, does Fox News lipstick up the unfair pig in the hopes that viewers won't recognize it as a pig?
What you are about to read is the blubberings of morons.....or the words of those who only know how to pimp for America's wealthiest.....
DOOCY: He (Buffett) does the same thing [that] everybody who invests in the stock market does. When you invest in the stock market, you're taking the money that you have made --
DOOCY: -- and if you're taxed at the higher rate, you've already paid 35 percent on it. Warren Buffet has already paid 35 percent on all the money he has put in the stock market. And then -- and this is one of those things that the government decided, OK, to get people to invest in the stock market, let's make sure that when they sell, rather than sell at 35 percent tax rate, it would be 15 percent. So anyway, while they talk -- so, it's a double tax. Do you want to be paying --
KILMEADE: Forty-five percent.
DOOCY: -- 35 and then 35 again? If you're an investor, you would say that's double taxation.
First....look again at the chart above. If your annual income is over $1 million, 2/3rds of that income, on average, came from investments in stocks, options and the like. The effective tax rate (after appropriate deductions) for those making over $1 million per year is 12%. The effective income tax rate for those Americans earning between $50,000 and $75,000, those who earn less than 10% of their income from investments in paper, is 14.9%.
So, right away, the Kilmeade-Doocey "35%" tax rate on guys like Warren Buffett is a bald faced lie. The 35% would be correct if Buffett and others who gamble on the stock market paid income tax rates on their capital gains, which, of course, they don't.
Set aside the apparent difficulty Brian Kilmeade has with basic addition....35+15=45? I mean, I guess morons just simply have to be morons......but let's focus instead on the totally nonsensical discussion by these two Fox buffoons over "double taxation."
Let's say an American businessperson earning over $1 million per year, and paying an income tax rate of 35%, decides to invest a portion of that income in the stock market. In my hypothetical, the businessperson has already paid taxes on his earned income. Some of the money this person has left over, after paying a 35% income tax rate, is placed on bets in the stock market. For illustration purposes, let's say the businessperson bets $50,000 of his post-income tax earnings on the market.
Following the storyline of the two Fox morons, then this businessperson later cashs in his $50,000 and "earns" a profit of $5000. In this scenario, what amount is taxed at capital gains tax rates? $50,000? $55,000 (as the morons suggest)...or $5000, the amount of actual capital gain?
Obviously, the answer is $5000. The businessperson didn't earn a capital gain of $55,000. That's the amount he got back when he cashed his stock market bets. But the $50,000 was simply a return of his original "investment" dollars.....and so, is not taxed....at all. Only the capital gain of $5000 is taxed....and only at a rate of 15%.
Where, then, is the "double taxation?" It only exists in the minds of Fox news show hosts who work desperately every day to protect and dutifully defend the already-coddled top 1% of Americans. The $50,000 invested in my hypothetical was left over from a $1 million income which had already been taxed at a 35% income tax rate.
That $50,000 was invested in stock purchases and then later those stocks were sold at a $5000 profit. Only the $5000 is taxed at a 15% capital gains rate. No double taxation applies.
Why do the talking heads on Fox lie and distort this issue?
Think about it. If it's true that the modern Republican Party only exists to tenderly care for the richest Americans...and it is true. Then what else could the communications arm of the GOP, Fox News, do....but lie?