Re: Re: How The Rich Avoid Paying Taxes
by Bob Williams
You might also note that the interest rate differential means that some bond owners receive net tax subsidies while others end up worse off. If the rate differential is 30 percent, for example, a bond owner in the 35 percent tax bracket saves 5 percent, while a bond owner in the 25 percent bracket effectively pay an extra 5 percent. The obvious question is why people in lower tax brackets ever buy those bonds.
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