today.reuters.com — "President Bush on Monday pitched his tax cuts as the best way to help U.S. workers, but said the country's dependence on foreign oil was threatening economic growth. Bush and the Republican Party have been defending the war in Iraq and now its record on the domestic economy."
Sep 4, 2006 View in Crawl 4
mualexanderSep 6, 2006
Too bad his capital gains "tax cuts" only count if you don't have kids. I guess U.S. workers with kids don't need help (not that many U.S. workers have serious capital gains anyways).The problem is that you may only pay 15% on your capital gains, but other tax breaks that you may have qualified will be reduced (such as the child tax credit). This gets particularly nasty when you throw the AMT into the mix.It's is worth noting that the "15% tax rate" on capital gains can actually be over 30% if you make 200-380k a year and live in California. I guess the administration wouldn't care about that though since many of the administration's friends and supporters make more than 400k (so they have an effective capital gains tax rate in the teens or low 20s), or they live in states like Texas with no (or low) state taxes (which means they again get taxed at something close to 15%).So the bottom line is that you get a tax cut, unless you live in high tax states like California or New York; moreover, if you have the gall to have kids in those pot smoking liberal states, then you'll pay even more.A summary of the "tax cuts" and their interaction with the AMT and child tax credits are described in the following Barron's article (click "cached" on the google results to read it):<a class="user" href="http://www.google.com/search?hl=en&lr=&q=unkindest+tax+cut+mcquarrie+site%3Abarrons.com">http://www.google.com/search?hl=en&lr=&q=unkindest+tax+cut+mcquarrie+site%3Abarrons.com</a>