Lower-Income Working Couple - Income: $20,000 - $30,000
This couple gets socked by the loss of the payroll tax break for people who work. They could also take a hit from new limits on health-care flexible spending plan contributions, part of the 2010 health care overhaul.
Average tax rate under new law: 1.3%
Average federal tax change: Up $279, or 446%
And even better, there hasn’t been a word mentioned about the carried interest loophole.
Most of the money I make now comes from investments from CrunchFund. And the vast majority of that is what’s called carried interest. Even though I’m investing other people’s money, the government calls it a capital gain. So instead of paying 39.6 percent on that money (I won’t call it income), I pay only 15 percent (or maybe 20 percent under the new rules – it isn’t clear to me).
In other words, income is a sucker’s game. Carried interest rocks.
Everyone wants the rich to pay more in taxes. They’re thinking about Mitt Romney and Warren Buffett when they say “rich people.” But really rich people like that are totally protected. Their accumulated wealth can only be touched by inflation. And if they’re in the hedge fund game, most of their “income” is taxed at just 15 percent.
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