Change tax rates

Sat., July 21, 2012

Federal tax levies are divided into three main categories: ordinary income, which includes business profits; investment income, which is dividends and capital gains; and estate inheritance.

In 2012, the tiered tax rates on ordinary income ranges from a low of 15 percent to a high of 35 percent. Also, this income is subject to payroll taxes, i.e., Social Security and Medicare. Congress should leave this rate as it is and not increase it, even for those earning over $200,000.

The investment tax rate is now 15 percent, and no payroll tax is paid on this. I think this should be raised to 35 percent for all such income over $10,000.

The excise tax rate is now 35 percent for estates over $5 million. I agree, as proposed by the president, that it should be raised to 45 percent.

Mallur Nandagopal

Spokane

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