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April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review July 27, 2012/ 8 Menachem-Av, 5772

Stoking Class Resentment

By Linda Chavez



http://www.JewishWorldReview.com | Senate Democrats passed a so-called middle class tax cut this week on a mostly partisan vote, but the move was more political theater than tax legislation. For months, the Democrats, with President Obama leading the charge, have hammered home that they want to preserve lower tax rates for those Americans earning less than $250,000 a year and help pay for lost federal revenues by making wealthier individuals pay higher taxes. But, in fact, even if the bill were to become law — which it won't — most middle class taxpayers will see their taxes go up come January unless Congress gets serious about real tax reform.

Senate Minority Leader Mitch McConnell says the bill is unconstitutional — and, on its face, he appears to be right. Article I, section 7 of the U.S. Constitution requires: "All Bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills." The House is scheduled to vote on its own tax bill next week, but the Republican-controlled House is likely to pass an across-the-board extension of existing tax rates, and compromise between the two chambers appears unlikely.

If no uniform bill passes and is signed into law, rates will revert to the pre-Bush tax cut rates — which will mean big tax increases for everyone. The lowest earners, who make less than $34,550, would see their rates increase from 10 percent to 15 percent, but that 5 percent increase would hit everyone on their first $34, 550 of income. The same would apply as each of the marginal rates bumped up from 25 percent to 28 percent, from 28 percent to 31 percent, from 33 percent to 36 percent, and from the current top rate of 35 percent to 39.6 percent.

So it's not just "the rich" who will suffer if Congress doesn't act. And these increases don't even count other expiring provisions that would reinstate the marriage penalty, increase taxes on capital gains and dividends and other soon-to- expire reductions in payroll taxes, which affect low-income workers hardest.

Nonetheless, the Democrats seem to see it to their advantage to promote class envy, accusing the Republicans of only caring about the rich. Virtually no economists believe that passing a tax increase in a struggling economy is a good idea — but somehow President Obama and Congressional Democrats believe they can limit the damage by supposedly only taxing those who can "afford" it.

But who are those "wealthiest Americans" the Dems keep citing? Illinois businessman Wilson F. Hunt Jr. recently passed on to me the details of how his small business, which he owns with his wife, will be ensnared in this scheme to soak the rich. Last year, his company reported $1.5 million in 2010 income. But because his company elects to pay taxes as a Sub-chapter S Corporation, all the company's profits are reported on the couple's individual income tax returns as the sole shareholders in the company. They paid almost $1.1 million in taxes in 2010, yet the couple paid themselves only a combined salary of $189,000. The rest of the income was put into retained earnings, which the company could then use to expand its business the following year.

Hunt explains it this way: "In order to earn a salary of $189,000 and continue growing our business last year, we had to pledge our house and most of our personal assets to a bank as collateral on a business loan. If the business were to fail, we could lose our home and life savings." Yet the Democrats vilify people like him as the rich out to cheat the middle class.

As Hunt points out, if he gets to keep more of the income his company has earned instead of paying higher taxes, he'll "create additional jobs and tax revenue next year with about a million dollars in the private sector, 'shovel-ready stimulus spending' on new computer hardware and software, professional services for installation, plus carpenters, electricians and plumbers to construct offices and a new parking lot."

We shouldn't envy people like Hunt; we should thank them for helping build an economy that makes us all better off. But don't try to convince Democratic politicians — they're too busy stoking class resentment to appreciate that some of those "millionaires" are the ones out there actually creating jobs.

Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.


JWR contributor Linda Chavez is President of the Center for Equal Opportunity. Her latest book is "Betrayal: How Union Bosses Shake Down Their Members and Corrupt American Politics". (Click HERE to purchase. Sales help fund JWR.)

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© 2006, Creators Syndicate

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