Re: “Loopholes for wealthy weaken fairness of income tax system” (Katie Baird column, 2-1).
It’s amazing that a supposed economics professor can be either so naive or so deliberately misleading in writing about various tax rates.
She does not understand nor convey that people who generate income from capital gains use their own money that has already been taxed as ordinary income. Then, as they invest in financial instruments and companies to generate income, they are taxed again at 15 percent. So, those who choose to invest and provide working capital to companies who can provide jobs are taxed twice, well above the 15 percent rate she quotes – which is totally misleading.
The idea that she continually advocates more and more taxes for her pet projects ignores the fact of who is paying. As the aging population increases, more people try their hardest to generate income from passive investment income to make ends meet, but she would have them taxed even beyond the double taxation already present in our system.
As to Warren Buffett’s secretary and her 35 percent-plus tax rate: Anyone with any knowledge of our tax system would quickly understand that her income has to be well above $200,00 per year to be in that category – hardly a comparative argument. And I’m sure she will soon be looking for passive investments generating capital gains to to achieve a lower tax rate given she would no longer have an income from wages.