Bizblogger

Site for Free Markets and Free People

Thursday, March 19, 2009

The 90% Bracket a Test Trial?

Powerline brings up a good point that I have also been thinking about: this 90% tax rate could very well be the trial balloon to see how the public reacts to a shockingly high tax rate on highly compensated executives. It also brings up the question - if the federal rate is 90%, then after you add in the deduction phaseouts, the state rate and FICA/Medicare, wouldn't that make the total rate about 110%?

It seems very logical to me that if the public is all for the high rates in the case of AIG, then they should also be for the high rates for bonuses of all other TARP recipients as well. And then taking it one step further, why not on large bonuses in general. (Ok, the government will give you a break with a rate of 60% instead of 90% - and that's just the federal rate.) Don't be surprised when it happens...