Inspired by this article:
It looks like Roll Call has also taken a look at the effect of Ryan’s policies on Romney’s taxes: Paul Ryan’s Tax Plan Would Slash Mitt Romney’s Tax Rate to 1 Percent
To review, Ryan wants to eliminate taxes on interest income, capital gains, dividends, and the estate tax.
But he would keep taxing earned income (i.e., money people actually worked to obtain).
So, if I get this right, some hypothetical person who inherits a billion dollars from daddy, and then never does a lick of work the rest of their lives, but instead subsists on income from investments (capital gains, interest, and dividends), would never pay a single dollar of federal taxes.
To put a number on it, let’s say that, like Mitt in 2010, they receive $20 million in income from these sources in a given year. They would pay Uncle Sam nothing.
Meanwhile, if I go out and earn $200,000 by the sweat of my brow in that same year, I would get taxed.
In other words, the nation’s entire tax burden would be borne by working people, while the leisure class would be absolved of any financial obligation to their nation.
Did I get that right?
And are there any conservatives who would care to provide a defense of this policy? (I think it is morally indefensible, but please give it a go.)