Thursday, June 01, 2006

Green's Tax Cut for Wealthy Raises Taxes for Others

Mark Green talks about lowering taxes all of the time. It is one of his favorite talking points. I think that if he was being honest with us, he would qualify these comments by telling us whose taxes he is willing to significantly lower.

He voted for the nearly $70 Billion tax cut which mostly benefits filthy rich investors. Here are a couple details of this tax cut that we have already discussed:

  • We learned this tax giveaway will likely save those making over $10 million a year $500,000 while those making less than $50,000 save only $10.

  • We found out that teens trying to save a little money for college will see their taxes on those funds triple.

Now because of a report from the New York Times (please register), there is a new group of Americans that will be hit hard from Mark Green's tax break bill for the super rich. The report tells us that many Americans living abroad will be hammered come tax time next year. This from the New York Times story:

Over all, the bill raises taxes on overseas Americans by about 6 percent, but most individuals will pay nothing more, while others will see their taxes quadruple.

For Kristine Kraabel, a gift shop owner in Singapore, and her husband, who is now the regional human resources director there for an American company, the new legislation will more than triple their American tax bill. Their tax adviser calculates that they will owe $20,000 to $25,000 more in United States taxes, up from $5,000 last year, even as they pay $20,000 in Singapore taxes.

Now since Mark Green often touts his living and teaching overseas for a number of years, he should be a little more sympathetic to others living overseas now. Unless being in D.C. all of these years has caused him to forget where he came from.

This tax hike for these specific Americans does not seem fair to me. Yes they do often get housing allowances from their employers but that is to offset the super high costs of housing in many other countries. Also these Americans are not even using the infrastructure in our country that many of our taxes support. I don't see why Mark Green would vote to give a reckless tax break to the richest among us, while he clearly has no problem with raising taxes on others.

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