Rush is Wrong on the Bubble Tax
I haven’t seen the tax bill, haven’t even read any facts about it, so I am just responding to Rush Limbaugh’s opening bit on his Friday show. He describes the structure of the tax in question as this: the first $45,000 of income gets taxed at a very small relief rate. Then money after that gets taxed at a higher, normal rate. More rates may ensue, I don’t know, and then when you are above a certain threshold, your tax rate is 39.6%. That is the top proper bracket. Then a funny thing happens: your millionth dollar of income, however that may be defined, will be taxed at a penalty rate which is 6% higher, so 45.6%. Let’s call these 40 and 46 just for convenience. You … Continue reading

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