The Really Unfair Tax
Bush wants to drop the "double tax" on dividends, but that's nothing. Wages withheld for Social Security may get hit three times, a burden on far more (less wealthy) Americans
When President Bush talks about his plan to stop taxing dividend income, he says he's doing it, in part, for philosophical reasons. "It's unfair to tax money twice," he said as he unveiled his economic-stimulus plan earlier this month. "There's a principle involved. The government ought to be content with taxing revenue streams or profits one time, not twice."But Bush was silent about the biggest double tax of all, one that hits every working American, not just the one-fourth of tax-return filers who report stock dividends. It's the income tax layered upon the portion of a worker's paycheck that is withheld to pay Social Security and Medicare taxes.
Bush wants to drop the "double tax " on dividends, but that is not the one that burdens most Americans.
http://www.time.com/time/magazine/article/0,9171,1101030203-411439,00.html
And depending on your other income may be taxed to the tune of 50 to 85 percent. That despite the fact that in all likelihood you were already tax twice on the same $.
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