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The Wealthy financed by the IRS Codes through the middle class.

Posted on: December 14, 2007

By Kelley R.Benningfield

Wall Streeters are saying that by 2011 taxes will rise because certain deductions are set to expire. Then the same logic, taxes have already risen for the middle classes. For, as I understood a past IRS agent, the following exemptions were eliminated for the middle classes; supposedly these deductions had a greater effect on the middle class than the wealthy. The deductions were;

1. Interest deductions for credit cards were eliminated.

2. Interest deductions for car loans were eliminated.

3. The amount deductible on Lines 20-26, of 1040-A was reduced by 2% of AGI.

4. Medical deductions were lowered by 2 ½ % (supposedly half of bankruptcies are caused by medical expenses.)

(From memory of a conversation a few years back.)

Senate Hearings: 16,000 exemptions (supposedly the New England Patriots are able to write off part of a $5000,000 fine) supposedly these have been added to the Tax Code Since Regan and Bradley sought to bring equity to the Tax Code, commented Wyden, Sen. D. (From memory. A couple of stats by Buffet, one would guess the exemptions favor the wealthy;

1. There are 23 million people making only $26,000 a year.

2. There was only one person in 1970 worth $5 billion, now there are over 158 billionaires. (My figures are suspect as I listened to the Senate Hearing only once.)

If any exemptions are restored to the middle class, offsets will not be against billionaires. Buffett, in a Senate Hearing, talked about $4 million exemption to the Estate Tax. Therefore lets start looking at farm subsidies for revenue neutral offsets;

1. $1.3 billion in subsidies since 2000 to people who do not farm.

a. Ted Turner est$590,000 subsidy last year.

b. At one time the subsidy for raising buffalo was approximately twice that for

raising beef.

c. Ted Turner receives the largest subsidy for buffalo.

d. Turner was looking a buying at least an additional 50,000 acres.

2. Scotty Pippin received an estimated $234,000 for farm fubsidies.

3. Grassly/Dorgan Bill, it was stated that 10% of the farmers get 70-80% of the

subsidies; there are several “gentlemen farmers” who haven’t farmed for at least

20 years.

4. Comments…the above figures are relevant because last year’s Farm Bill, passed by the Republican Congress will continue for another year if the new Farm Bill isn’t

passed.

Cavuto on FOX commented…billionaires he had talked to indicated that they should pay more taxes, but none sent checks
voluntarily. Stein said the wealthy should pay more taxes. (I think he said he would only appear on FOX.)

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