Walt wrote:
The problem lies in that the tax rate changes depening on how you make
the money. If you *earn* it by *working* it's taxed at a higher rate
than if you obtain it without working. That's my main beef with the tax
system.


Agreed.


A guy who busts his ass working as a plumber or a ditch digger pays a
higher rate than a guy who makes much more flipping condos or bonds. And
the guy who makes money flipping condos in turn pays a higher rate than
the lucky offspring of the well to do who "earn" their fortune simply by
virtue of outliving their parents.


Well, you have to pick your parents. The big problem with
the inheritance tax is
1- it seems to resonate with a lot of angry voters who
themselves aren't going to inherit anything except car
payments and possibly a mobile home
2- it is burden... often unbearable, literally... on small
family owned-businesses that are assessed by their average
gross. The burden is unbearable and the business is sold
(usually for not much money) when the net is much smaller
and the cash flow won't support the tax assessment. One way
to fix this would have been to seperate inherited propery
from inherited businesses.... but that was never even
proposed AFAIK.


Plus, workers whose salary is more than $90k don't pay FICA on the
amount over that. If you make money via dividends or capital gains, no
FICA is due at all.


That would be one way to try to fix Social Security
long-term, but the same angry voters won't hear of it.

DSK