A good example is this absurdity from Wisconsin State Treasurer Kurt Schuller. In today's press release, Schuller reiterates the tired BS about rich people being "job creators" and that it would be harmful to the economy if they got their taxes raised. It's bad enough when someone whose basic job is balancing books and counting the state's money is throwing up this partisan garbage instead of doing his job, but then Schuller tries to give a concrete example, and shows how absurd his comment truly is.
“I am concerned that a plan that is being promoted as a tax on millionaires and billionaires actually affects people who make much less.”
For example, an individual in the 35% bracket with $25,000 annually in tax deductible mortgage interest payments and state and local property taxes could have a maximum tax benefit of $7,000, not $8,750.
My immediate reaction was "What kind of house has $25,000 in mortgage interest?" And using bankrate.com's Wisconsin rates of 4.0% to 4.5%, I found out the answer was "a pretty awesome one." So it's time for a little story problem.
Q: With rates currently at 4.5% on a 30-year mortgage, how much of a new house do you have to buy with a 4.5% mortgage to get to Schuller's $25,000 in expenses?
A: $555,555! Or 4 times the Wisconsin average of $142,700. You're basically talking homes like this 4-bedroom, 4,400 sq-footer in Fitchburg, this 4-bedroom on Lake Drive in Milwaukee, or this lake view cottage in Pewaukee. Not exactly the homes we're paying off.
In addition, Schuller quotes the put-upon married couple making $250K, and the single guy/gal making $200,000. Those people are not the average Wisconsin family, as the $250K couple make 4 times the median household in the richest counties in Wisconsin, and 5 times the median household income of Wisconsin.
So in other words, when Treasurer Schuller is shedding tears for the folks in the top tax brackets, my response is BOO FUCKING HOO! I'd love to have the problems that someone in that financial situation would have, and I'd certainly be shutting the fuck up about how tough it's going to be if I have to pay another nickel in taxes on my last few dollars.
And oh yeah, if you're so concerned about the economy being slowed due to higher taxes, why do you choose to ignore the direct link between lower taxes and lower income growth for the typical American worker? Your vaunted "job creators" have had their chances to create jobs with their lower taxes for the last decade and have failed miserably. So it's time for them to pay into cutting the deficit that their lack of job-creation has caused. Don't want to pay the higher taxes? Then take fewer profits and HIRE FOLKS. Simple choice, eh?
Maybe Kurt Schuller's WisGOP constituency and campaign donor list may be typically in the $200K income/ $555K home category, but his comment are a clear illustration of just how far out of touch the average Republican is with the typical person's situation. And why they deserve to be ignored on any discussion of taxes.
For example, an individual in the 35% bracket with $25,000 annually in tax deductible mortgage interest payments and state and local property taxes could have a maximum tax benefit of $7,000, not $8,750.
ReplyDeleteBother to read the entire paragraph or is that too much work?
depending on your community you can earn under 100k and if you total all three items listed.(not just the selectively pulled interest) this could be you. the rest of your blog is based on a premise that leaves two thirds out of the equation. Did you do that on purpose of are you just sloppy in your journalism
ReplyDelete"This cat's a 35-year old libation-enjoying gabber taking his time to get it right."
ReplyDeletedid not take your time this time though did you
To whatever paid hack you are:
ReplyDeleteIf you have $25,000 in mortgage interest, YOU ARE LOADED and living in a house that is at least $555,000. If a Wisconsin couple makes $250K or an indivudual makes $200K, THOSE PEOPLE ARE LOADED. 95 to 99% do not fall in either of these categories.
But the hack you support called those people "typical Wisconsinites." That's the point, and like most righties, you couldn't refute those facts and numbers, so you went off-topic. Also, write sentences at a level above 8th grade next time, OK?