In ways large and small, Washington coddles rich

[JohnWxy]

http://blogs.usatoday.com/oped/2008/10/in-ways-large-a.html

In 2007, the top 50 managers of hedge funds and private equity firms earned an average of $558 million, according to Alpha magazine. (Really. That's not a typo.) Despite having incomes equal to the output of some small countries, many of them paid a lower tax rate than middle-class Americans.

How can this be? Through a complex sleight of hand known as "carried interest," they pay just 15% by masquerading their income as capital gains.

Last year, when some in Congress proposed ending this practice, they drew quick support. Then the private-equity lobby went into full mobilization. It hired multiple lobbying firms, spread around campaign contributions and created advocacy groups passed off as broadly based trade associations. The proposal went nowhere. Cost to taxpayers: $2.7 billion a year.

Whether investment income should be taxed at a much lower rate than earned income (15% vs. a top income tax rate of 35%) is a matter of considerable debate. Encouraging investment does help generate economic growth. But the argument ignores the fact that lower capital-gains rates mean higher income taxes on labor or more borrowing from future generations.

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[Andy823]

1. These are the kind of things

That need change, and any member of congress that is taking lobbying money from these groups need to be replaced! Drastic change on lobbying needs to be taken on in congress, and the public needs to get the message out to those who are not going to work for the "people" are going to be voted out of office.

[WCGreen]

2. HAving a two tiered taxation system is really destroying the

egalitarian ideals of this country...

[leveymg]

3. Impose the Alternative Minimum Tax (35%) on earnings > $10 mil. No loopholes, no exceptions.

Then, audit them up the gazoo.

[JohnWxy]

4. alas, we won't have filibuster proof 60 vote majority in Senate so the Republicans will stop that.

excellent idea though.