America’s progressive millionaire president Barack Obama is a class warrior par excellence. But like 99% of progressives, his wealth redistribution ideas are for thee and not for me. Take his taxes, for instance.
The Wall Street Journal is reporting that President Obama paid an effective tax rate of 18.4% on family income of $608,611 in 2012. The $112,214 he shelled out to Uncle Sam this year is less than the $162,074 he spent last year financing his progressive ideas, when he made $789,674 in adjusted gross income.
It’s not that progressives are hypocrites, it’s that their ideas don’t comport with human nature or reality more broadly. While America is getting an increasingly progressive tax code, if one factors in corporate taxes and estate taxes, billionaire companies like Google and Facebook, and multi-millionaire investors in non-profits and trusts, like George Soros and Bill Gates, are cut all the tax breaks in the world.
While such legislation in 2013 as raising the long-term capital gains rate from 15% to 20% does affect the super-rich, President Obama is largely able to avoid such hits to his wealth. Here’s a glimpse of recent changes to our absurdly byzantine tax code, which is three times longer than War & Peace:
- The maximum tax rate on ordinary income jumps from 35% to 39.6% — and the maximum tax rate on long-term capital gains and dividends from 15% to 20% — on taxable income in excess of $450,000 (for married taxpayers, $400,000 if single).
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