Saturday, August 18, 2012

How Good Liberals Can Pay More Taxes Without Having To Sit Around And Wait For Obama To Raise Taxes

There are wealthy Liberals who try to be down with the homies (and by "homies", I mean people who only make average money) by declaring they believe wealthy people like them ought to pay more in taxes.

Sonic Charmer, from Rhymes With Cars and Girls, has suggestions for them:

Memo to super-rich people who ‘think your taxes need to be higher’ but (for some reason) are waiting for Congress to raise tax rates before sending in more money to Fedgov: You don’t have to wait! There are plenty of things you could do to raise your current tax owed under the current rates. 
For example, you could, like, take a bunch of money out of your 401(k) (or similar) early for no reason. That will incur a penalty, which you’ll have to pay.Other tax-sheltered vehicles: Roth IRA, college funds for your kids – hell, empty ‘em out, into your savings account. ‘Penalties’ galore. Then start up new ones (for next year)! 
Those penalties add up and go straight to the U.S. Treasury, just like taxes. Voila, you will have raised your effective tax rate! 
If you buy bonds, stay away from munis. Interest on municipal bonds is deductible. You don’t want that! You want to pay more taxes! (right?)
Sell investments for gains but never crystallize any losses. Nothing to offset your capital gains! Or if you had losses that were unavoidable, sell anything that shows a gain from its cash basis on December 31 until your capital-gains go positive. Either way, maximal tax! The capital gains tax rate is too low anyway (right?). 
Go read the whole thing. 

Now that they have these suggestions they don't have to sit around and wait for Obama to "force the rich to pay their fair share."

They can start paying "their fair share" right away.

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