Quote Originally Posted by Rogar View Post
I am hardly the tax expert, but one difference I see between the likes of Romney and Lefty is income from wages earned and income from dividends and capital gains. While the income from wages is indeed progressive, the conservatives actually won a huge victory with the new tax laws which made the bush tax cuts on dividends and capital gains permanent. I see this system as indeed favoring the wealthy.
Maybe, but all it did was lower the discrimination. Equity income (e.g. dividends) is still taxed at a higher rate than interest or wages. Although Peggy is totally wrong about the way the tax system works, she did stumble on one truth- smart people know this and try to plan around it. The net effect is to have companies with too much debt and, in a classic application of the law of unintended circumstances, actually causes US companies to be too leveraged and maybe encounter bankruptcy more often.