The Nonsense Tax Debate
by Vince?Daliessio
John Kerry has made rescinding the Bush tax cuts for families making salaries over $200,000 a centerpiece of his campaign. Class envy isn't an especially noble trait to display, but ok, fine. Demonize two-income professional families if you want to.?Joe the engineer and?his?attorney wife lose their tax cut, woo hoo! The emptiness of the rhetoric, however, is really apparent when you read this article?in Newsday, and see how many corporate executives receive the bulk of their compensation in perks, stock, and options, taxed not at 35% (or, under Kerry's revocation 39.6%), but (when they vest) as long-term capital gains at 15%.?For example, check out Harvey Blau, chairman and CEO of Griffon - $5m in salary, true, but options potentially worth $25 million. That means under Kerry's plan?he would?have paid 39.6% on his first $5 million, unless he hit the AMT, poor baby. But on the next $25 million (or more), he would stilll be taxed at the long-term capital gains rate of 15%. How would you like to be able to do that with YOUR salary?
