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Politics : GOPwinger Lies/Distortions/Omissions/Perversions of Truth -- Ignore unavailable to you. Want to Upgrade?

To: Nicholas Thompson who wrote (100996)	6/23/2007 12:36:35 AM
From: Peter O'Brien	Respond to of 173976

o.k., I thought were were talking about earned income. Long-term capital gains were not taxed at 39.6% before Bush. Bush cut this tax from 20% to 15%. Yes, the tax on dividends was cut from the top marginal rate (possibly as high as 39.6% before Bush) to 15%. On the other hand, the middle-class gets other "goodies" that the rich don't. The "child credit" is a big example of this. It phases out for families making over 110K, but for middle-class families it can dramatically cut their tax bill (much more than the rate reductions I described in my previous post). Itemized deductions and personal exemptions also phase out for rich people which makes their effective tax rates higher than the rates described in my previous post. And, the poor effectively get a negative income tax with the EITC! (the government owes them money!)