http://www.bloomberg.com/news/2011-0...th-echoes.html
Taxes Should Favor Work Over Wealth: Echoes
By Joseph J. Thorndike Aug 30, 2011 2:57 PM ET 7 Comments Q
Two weeks ago, Warren E. Buffett called for raising taxes on wealth. In honor of Labor Day, let's consider a different question: should we lower taxes on work?
As Buffett pointed out, rich people -- especially investors -- get a relatively easy ride under the current tax law. Much of their income comes in the form of capital gains and dividends, both of which are usually taxed at a maximum rate of 15 percent.
By contrast, most people who depend on wage income to buy groceries face higher rates. According to the Tax Policy Center, an independent think tank, most people making more than $12,500 annually will pay higher effective rates than Buffett and his fellow billionaires.
Rich wage earners will pay a lot more: a salary man making $500,000 can face effective rates near 38 percent, much more than someone making the same amount from investments.