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Federal Employee Pay Freeze
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Anonymous
Ludicracy: Government by the ludicrous. |
Anonymous
Hedge fund managers ARE taxed the 15% rate: http://www.huffingtonpost.com/2009/02/26/will-the-taxman-cometh_n_170082.html, and http://www.epi.org/publications/entry/pm120/. Yes, capital gains are taxed at 15%, and have been taxed at 15% for way longer than past 10 years you refer to (since the Reagan Administration I think?). Given the long existence of the capital gains tax, your claim that this is a government policy to help us out of the recent recession is wrong. Instead it's a government policy to help rich people -- always has been, always will be. Why should one type of income (investment profits, even if at a risk) be taxed differently from another type of income (wages and salaries)? Yes, you are correct that investment income comes with more risk. But it also comes with greater returns. There is a name for this -- the "equity risk premium" -- and one measure of this premium is the difference between returns to stocks and returns to bonds. Because investors demand greater returns on riskier investments, the market factors this into the price of stocks (the market is also factoring in the favorable tax treatment, which shows up as a distortion to the price of stocks). So the argument here seems to be, if you take on greater risk, not only will you get greater returns, but your greater returns will be taxed at a lower rate. Your point about the government not being "a partner in your losses" escapes me. You point out that you are taking risks, but then complain that the government doesn't support you by "sharing in your losses," which would seem to entail giving you a bigger write-off than a mere $3,000. But the government isn't a partner in your gains, either, because it only gets 15%, not your higher income tax rate, on the higher returns to risky investments. What I meant was there should be an inheritance tax, not a wealth tax. A 5% inheritance tax seems too low. Could you explain (not the first time I've asked) why heirs who never worked a day in their lives should benefit from a windfall inheritance that will go scott free if the Republicans get their way on the estate tax? Your point about rich liberals in the northeast "freaking out" must be ironic. Yes, some of us think we owe something back to society. And yes, I have a brokerage account with individual stocks, as well as mutual funds, so I benefit from the 15% rate even though I think it's wrong. And I would expect to benefit if the estate tax were eliminated. |
Anonymous
| no tax on estates up to 5 million with adjustments for inflation. 50% on estates over that. 5% per year tax on accunulated wealth over 100 million |
Anonymous
How many of you understand the golden rule? Not many, so here it is , all in one syllable words: They who have the gold rule. Always have, always will. |
Anonymous
Mind telling me which areas of government you think are "bloated?" Are you willing to forego your current or future Social Security and Medicare to reduce this "bloat?" If not, STFU and go away. |
Anonymous
Why should those in the military be asked to sacrifice their lives for their country when many of them (enlisted) are not paid half of your salary? You are not in harm's way but you are a whining, spoiled, self-indulgent horse's patoot. Your salary has not been cut only frozen and steps in grades or promotions have not been frozen. Why should Federal govt. employees be exempt from wage freezes when the surrounding state and municipal governments have instituted wage freezes as well as massive cutback and layoffs? You should not be exempt. Be grateful for what you have or you might lose this, as well. |
Anonymous
There are 2 separate issues going on with the Hedge fund discussion. 1. Whether hedge fund manager profits should be classified as capital gains or ordinary income. Under today's rules, almost all of the money they make gets classified as capital gains, even though the profits are not a result of their personal investment stake (mostly). 2. Whether capital gains and ordinary income should be taxed at the same rate. The lower capital gains rate is to encourage investment in business, but implicitly that means that it encourages people to work less by a higher labor income tax rate. You can still object to the hedge fund tax classification even if you think that a low capital gains tax is good for the country. It could be reclassified as ordinary income with an accounting rule change. There is plenty of evidence to support the decision. Much larger changes have been done before, such as changing how companies account for stock option grants. |
Anonymous
Thanks for clearing this up, PP! My preschool just posted their prices for next year, and they are up 6%. Also, our health care premiums are going up 8%. Do you think if I just call these companies and tell them that prices aren't rising, they will realize their mistake and keep the same prices as last year? How silly of them to not have understood this. |
Anonymous
Yeah I can find some items that are going up, too But that doesn't mean that overall prices are rising. You probably aren't paying 6.5% on your mortgage, but you aren't going to write your mortgage lender and tell them they accidentally undercharged you, either. |
Anonymous
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In the private sector, people are getting total wage freezes and even wage reductions. For some people a third or more of their pay is in bonus, and guess what? Companies aren't shy about cutting or not paying bonuses at all. And in the private sector, most companies don't have an automatic cost of living adjustment, at all.
You federal employees can still get within grade pay increases and promotions. You haven't been frozen on merit increases. You haven't been sent home without pay. You didn't take a 5% cut. a 10% cut, or a 30% cut in pay. You have no idea how much better you have it. Actually I think you do but you don't care. |
Anonymous
Aaaaah, so this is what it is about? Yes PP. You win the prize for the worst, most sucky situation. You have been hurt by the economy more than everyone else. In fact, I think there should be some kind of award for you because you have CLEARLY won the "who has it worst" argument. You win, you have it worse. I'm going to give you the official title of "I Have It Worse Poster." That way there will be nooooo confusion from here on out that you always have the moral high ground on emotional reactions because, after all, You Have It Worse. In fact, I think feds should be happy they their pay was frozen for two years! I can't believe so many of them have been upset by this news. Hell, if someone told me I was going to have my pay frozen for two years I'd take it as the best news I've ever gotten! Because at least I'm not in YOUR shoes!! Similar thing happened to my kids . . . I found out my son has autism. I started to feel bad for myself, but then I realized that other people have kids with terminal illnesses. So I guess I have no reason to vent or complain or be unhappy with my situation. Indeed, it is not a normal human response to be disappointed with bad news. Is that your point, PP? |
Anonymous
Ummmm . . . do you even understand how mortgage interest rates work? Do you understand how they are set? The basic cost of living is going up. Heating bills have increased year on year. Daycare costs increasing. Medical costs increasing. College tuition increasing. The freaking price of cable tv increases year on year. The cost of groceries is increasing. But you think because you have identified one item that is being held artificially low by the fed interest rate manipulation, my overall monthly expenses aren't going up? It is simple math. Yes, my mortgage will probably be more or less the same next year, depending on my property tax assessment. But if daycare, college tuition, medical premiums, and utilities all go up, that means my COST OF LIVING has increased year on year. |
Anonymous
I am pointing out one large cost savings that has occurred over the last few years, one by the way that you should have by now locked in for the next 30 years. If your mortgage is not a lot lower than it was three years ago, you have royally screwed up. But there are others. The big complaint two to three years ago was the price of gas, and that has gone down 25% since then. You aren't paying as much in retail. The list goes on and on, and the only way to make sense of it all is to look at the CPI data. We are in a very low inflationary environment. |
Anonymous
Actually, I don't have a mortgage. We own our house in full, but thanks for the tip. Yes, gas prices are less now then they were at their height a few years ago when it was $4 a gallon. Gas prices go up and down all the time. They will go up around any holiday, any driving weekend, etc. They are likely to continue to increase. If you want to learn about what retail items will cost, do some research on cotton. Prices are expected to dramatically increase in the next year. But you are shifting the debate. You are trying to say the COLA freeze is appropriate because there is no inflation. So . . . by that logic, you have nothing to complain about with your financial situation, either. In fact, why is anyone in the private sector at all complaining about frozen pay? I guess it has no impact whatsoever! All these private sector employees are lying about how hard it is. Here is a list of common household expenses that will increase next year, and the year after that: - college tuition - daycare costs - medical insurance premiums - medical insurance copays - rent - gas - utility bills - groceries By freezing the pay of feds, this will take $6 billion out of the local DC area economy over the next several years. This means less employees needed at Walmart, Target, the movie theater, less babysitting jobs for teens, unemployment for nannies and household workers, less expendable cash to generally keep small businesses (the private sector) afloat. |
Anonymous
I am not complaining about my situation. My company has whacked bonuses, frozen wages and so my income is 75% of what it was a few years ago. And right now the only way to make even $1 more than last year is to get promoted, a tough thing to do when everyone above you is afraid to leave the company due to the recession. Ya know what? That is entirely rational on my company's part. It is also rational for the government. But you can still get your within grade increases. You don't have 25% of your income tied to a corporate earnings target or board approval. All you have is a 1.4% pay increase withheld and you are up in arms. This is why people are saying you are acting entitled. |