If you work for a living and make anywhere from $35,000 to $85,000, you pay a marginal tax rate of 25 percent. But what about hedge-fund managers or people who work in private equity, or who just live off the investments they inherited?
What tax rate do they pay?
a) 0 percent
b) 15 percent
c) 20 percent
d) 39.6 percent
Answer: b) 15 percent.
The long-term capital gains tax rate has been at 15 percent since 2003, when it was reduced from 20 percent.
The result is that people who make money by moving money around, people like Warren Buffett and Mitt Romney, pay a lower tax rate than people who teach children, pave roads, care for the sick or answer 9-1-1 calls.
Wanted: Your signature!
Only a couple of weeks left for us to get enough signatures to place Gov. Brown’s millionaires tax on the November ballot.
If you joined SEIU 521’s tele-town hall last week, you heard highlights of the plan:
- Raises nearly $9 billion for the next budget year.
- Asks the wealthiest Californians to make a stronger contribution to our state: Only households making $500,000 or more would pay higher income taxes.
- Helps secure additional revenues to protect education, public safety, and critical services for our most vulnerable residents.
What you can do:
We need to collect enough voter signatures to place the plan on the November election ballot. Be sure to sign the petition. Better yet, go out and help gather signatures! 3 ways to obtain the petition:
1. Contact your internal organizer.
2. Pick one up at your nearest SEIU 521 office.