Wednesday, April 16, 2008

Taxes and the debates

I do not know what is so difficult about taxes.

Why can't candidates say "look at your tax return. If line 7 is over 250k your taxes will go up. If line 7 is under 250k then your taxes will stay the same, or go down.

If line 13 is where you make most of your income you will see your taxes rise to about 20%, from the current rate of 15%. If you do not have much income on line 13 then don't worry about tax increases."

For most wealth Americans, the vast majority of income shows up on lines 9a, line 9b and line 13. These are taxed at a 15% rate, far below what most Americans pay on line 7 at 25%.

Look at your own return. Would a tax increase on lines other than line 7 make a difference? Probably not.

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