You're not going to miss $5,000
But U.S. Representative Mike Ross sees it differently. He's supporting a proposal to make taxpayers with incomes of $1 million or more pay an extra one-half percent income tax. This is in addition to the high tax rates they already pay on much of their income by virtue of our tax system that has higher rates for higher income brackets.
Ross said, "So someone who earns $2 million a year would pay $5,000... They're not going to miss it." Really? I don't think it's fair to keep piling taxes on the rich just because it sounds good to those in lower tax brackets. No one minds a tax, so long as they're not the ones who have to pay it.
What's this new proposed tax for? More education benefits for veterans of the war in Iraq. I'm not necessarily for or against the education benefits, as I'm not up to speed on exactly how the money would be spent. But I am definitely against more taxes. We are already overburdened with federal, state, and local taxes. There is no need for one more tax, even if it would only be paid by those naughty rich people who some politicians think should be flogged over and over again.
Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.