OBAMA ADVISER SAYS PRESIDENT WILL NOT EXTEND BUSH TAX CUTS, EVEN TEMPORARILY: ’100% COMMITTED’

[hfojvt]

102. because members of the top 1% and the top 5%

still get tax cuts on their first $250,000 of income. (At least those who make more than $250,000 a year do)

Thus, those who make more than $250,000 still end up with bigger tax cuts than those who only make $80,000, and those who make $120,000.

"My" numbers come from Citizens for Tax Justice, showing the distribution on page 1 of the "original Obama plan"

http://www.ctj.org/pdf/taxcompromise2010.pdf

13.3% to the top 1%
13.2% to the top 4%
27.7% to the next 15%
13.9% to the bottom 40%

Further, I am not even sure how the Obama plan works for dividends (or capital gains). Does it create another form to charge a different rate for people making over $250,000? Or does it still leave dividends taxed at a lower rate for everybody?

The first way seems excessively complicated (as well as a little bit unfair for people on the margins - if you make $245,000 your dividends are taxed at 15%, but if you make $255,000 your dividends are taxed at 28%.).

The second way still allows massive tax breaks for the wealthy.

My point is that dividends should just be taxed just like ordinary income.

So should capital gains.