Las Vegas Sun

March 28, 2024

Letter to the editor:

Tax system favors the very rich

In response to the column “A tax system that’s tilted toward the rich,” (Las Vegas Sun, Jan. 12):

A much higher tax percentage is being paid by those in a shrinking middle class while the wealthy derive much of their income by clipping stock dividend coupons taxed at a low rate. There is a theory that investing in stocks is a job creator. For the most part, this is nonsense. Companies that pay generous dividends do so because they offer limited capital gains and have nothing better in which to invest.

What about investments in startup companies? Successful ones such as Apple, Facebook and Amazon yield capital gains that exceed anyone’s dreams. These gains also are taxed at a low rate. But benefits to the wealthy go beyond investment.

For individuals in a higher tax bracket, there’s mortgage interest and property tax write-offs for multiple homes. The real estate industry uses this as a sales tool, but the benefit to most working families is marginal. For the few in the 39 percent tax bracket, there’s always the tax write-off for investment losses and donations to their favorite charity. Why does the middle-class taxpayer need to subsidize the wealthy taxpayer’s charity of choice? Should we also continue to allow deductions for church contributions? By law there’s a separation between church and state. In the end, it isn’t about rational choices; it’s about money, power and votes. Just wait; the new Republican-led Congress is going to fix our current tax system, right?

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