Friday, November 13, 2009

Liberals Economic War on the Productive

U.S. Senator Majority leader Harry Reid is considering attaching a Medicare tax on workers making more than $200,000 to help fund health care reform. Reid, of course, fails to recognize that these individuals will already be paying confiscatory rates on their income in 2011. In 2011, the Bush tax cuts expire pushing the capital gains rate from 15 to 20 percent and the top marginal rate from 35 percent to 39 percent. Combine that with the 5.4 percent surtax on those making more than $500,000 contained in the House version of the health care reform bill, means that liberals are serious about punishing work and rewarding indolence.

According to the Wall Street Journal, http://online.wsj.com/article/SB10001424052748704402404574527781844595304.html these actions represent a 69 percent hike in taxes for the more productive or high income workers and small business owners. Tacking federal taxes on to state income taxes means that many individuals will be paying between $0.50 and $0.55 in income taxes for each dollar earned. These tax increases threaten the strength of the economic recovery as these higher income workers decide to spend a little more time at the lake and a little less time at the job. Ernie Goss

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