The Rich Can Pay Higher Taxes Right Now

From Dana Milbank in today’s Washington Post:

“Tea partiers, eat your hearts out: A group of liberals got together Tuesday and proved that they, too, can have a tax rebellion. But theirs is a little bit different: They want to pay more taxes.

“I’m in favor of higher taxes on people like me,” declared Eric Schoenberg, who is sitting on an investment banking fortune. He complained about “my absurdly low tax rates.” “We’re calling on other wealthy taxpayers to join us,” said paper-mill heir Mike Lapham, “to send the message to Congress and President Obama that it’s time to roll back the tax cuts on upper-income taxpayers.” “I would with pleasure sacrifice the income,” agreed millionaire entrepreneur Jeffrey Hollender.”

MP: For any of the wealthy who are anxious to pay more taxes, they don’t have to wait for the Bush tax cuts to expire, they can pay more right now. Here are some ways:

1. They can make a gift to the U.S. Treasury at any time (why not today?), here is the website with instructions. (Dana Milbank mentions this, but doesn’t provide the website.)

2. They can pay their 2009 taxes at the higher Clinton tax rates of 2000, instead of the current lower rates (see chart above).

3. They don’t have to itemize deductions on their 2009 taxes; instead they can take the standard deduction of $5,700 for singles married individuals filing separate, or $11,400 for married couples, which would typically result in a much higher tax liability for rich people.

About Mark J. Perry 262 Articles

Affiliation: University of Michigan

Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan.

He holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University in Washington, D.C. and an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota.

Since 1997, Professor Perry has been a member of the Board of Scholars for the Mackinac Center for Public Policy, a nonpartisan research and public policy institute in Michigan.

Visit: Carpe Diem

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