FreddieVee Weighs in on Fiscal Cliff

FreddieVee is quite an active contributor to the Huffington Post. Here is his most recent response to: Obama Tax Plan Cut-Off Closer to $300,000: Analysis

“Why won't they tell us the truth about what they are fighting about on the tax side of the Fiscal Cliff?

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The real problem is that the owners of the huge yet so-called small businesses contribute millions of Dollars to the GOP. Koch Industries makes a huge enough profit that the combined net worth of the Koch brothers increased by $12 billion (after taxes) last year, which means that even if they spent nothing on themselves for the whole year, that they made over $18 billion in profit. If the rates stay the same, but personal deductions are eliminated, people who make their money by working, for example a NBA player who makes $20 million would pay more, probably as much more as if their 35% top rate went to 39.6% as the Democrats want, but Koch Industries which files as a small business and uses the same forms as a private individual would not have their deductions changed because any money spent to bring in revenue would still be a business deduction. For example, even if home mortgage interest and home property taxes cease to be personal deductions, the mortgage interest on a factory and the property taxes on that factory will still be a deduction.

So the reason the GOP wants the rates to stay down, but will agree to eliminate deductions is the small business owners who donate Millions would remain whole while human tax-payers would pay more.

FreddieVee

In an aside, Freddie adds: And one more thing, When the GOP talks of "Cutting spending", they mean cutting spending on people, not on the spending their donors spend protecting their seats in Congress.

To read more of Freddie's posts, follow this link.