Daily News Article - September 21, 2011
1. What has President Obama called on Congress to do regarding taxes?
2. a) How does the AP refute President Obama's claim that middle-class families pay higher taxes than millionaires?
b) List the statistics provided in the article.
3. What fact does the AP say President Obama uses to make his claim that the wealthy pay taxes at lower rates than middle/lower class people?
4. Responding to the article, reader Michael G. wrote:
"You can't invest in the stock market with magic fairy dust. You have to invest money, and the money I invest in the stock market has already been taxed. This is just common sense and it's amazing so many people miss it. So let's pretend I make $100,000 a year. I pay federal income tax, social security tax, and state income tax (and city income tax if I live in NYC). What I am left with is MY MONEY, right? Now, if I invest MY MONEY into the stock market, I pay 15% tax on the profit, if I make any profit. If I lose money, I only get to write off $3,000 per year for the loss. But the article already points out that Warren's secretary doesn't actually pay any income tax because of all the write-offs. [Almost half] of the country pays no federal income tax. The other thing that NOBODY is understanding in this whole absurd debate is Obama's new tax on the wealthy won't change Warrent Buffet's effective tax rate at all, because his income comes from capital gains and Obama isn't proposing raising the capital gains tax. So, once again, Democrats are being completely dishonest in the debate."
Do you think Michael G. has a legitimate point? Explain your answer.