the March 14, 2001 on-line edition of the Washington Post
in an article titled "The Very Rich Pay Growing Tax Share",
David Geffen, the music mogul who amassed a $3.3 billion fortune
and was placed 70th on the Forbes 400 list of the richest
Americans that year, was quoted as saying:
for myself, I don't need a tax cut or tax relief…It is a privilege
to be an American citizen…It is appropriate to pay a greater share
Easy for you to say, Geffen.
Geffen made his fortune about 10 years ago by selling his company
to Sony for about $2 billion. I believe the federal capital gains
rate was about 28% at that time.
am a single, self-employed taxpayer in the State of Arizona who
finds himself in a 46% tax bracket once I reached a very humble
$26,250 in taxable income for the 2001 taxation year. The figures
(POST Bush tax cuts):
MARGINAL TAX RATES FOR SINGLE SELF-EMPLOYED FILERS LIVING IN ARIZONA:
Federal marginal rate
FICA tax (Social security and Medicaire contributions)
Arizona marginal rate
here I am, a struggling working stiff, paying almost 50 cents of
every dollar I earn once I reach a paltry $26,250 in taxable income;
and David Geffen, who amassed his fortune of billions by paying
tax at a rate WAY BELOW what I pay and he has the sanctimonious
gall to state that it is "appropriate" to pay a greater
share of taxes? Well, he sure as hell didn't.
supported President Clinton over the 8 years of his presidency and
is a well-known Democrat. President Clinton, on reaching office
in 1993, immediately put marginal tax rates up to the high levels
they are today.
the proposals of his successor, George W. Bush, don't go nearly
far enough. At the bracket that starts at $26,250, Bush's tax changes
from the Summer of 2001 only reduces the federal marginal rate from
.280 to .250 over the next four years. Now, Bush has said he also
wants to do something with Social Security contributions so that
some (not all) can be put into IRAs but, of course, one will still
have to set aside that money or else lose it to the federal government
(either way, the tax-payer will not have access to those funds for
current spending on goods and services).
taxes don't hurt the fat cat rich like Geffen and never have…the
rich already have money. Progressive taxes hurt the poor who aspire
to someday become rich.