Thursday, December 17, 2009

How the Bonus Tax Can Steal Christmas

Bonus taxes on bankers are all the global rage. Soon they’ll likely be extended to corporate executives and other greedy individuals. So, why not impose them on their most vocal advocates, the disproportionately left-leaning professors, especially in the highly-paid elite universities, who routinely support higher taxes on the wealthy to finance increased government spending on their favorite programs!

In keeping with President Obama’s pledge not to raise taxes on single persons earning less than $200,00 and married couples less than $250,000 a year, I suggest a 50 percent bonus tax on all professors whose earnings exceed those levels. Moreover, because the professors are so keen on progressivity, I further propose an additional 5 percent bonus tax on each incremental $50,000, up to a maximum bonus tax of 75 percent on earnings exceeding $450,000 and $500,000 for single and married taxpayers respectively.

Moreover, to avoid any loopholes, professors should also pay these bonus taxes on dividends and capital income, including hitherto tax-exempt bonds.

While we’re at it, how about applying the bonus taxes to state and local taxes!

Applying bonus taxes on academics will affirm their enthusiasm for living by their own doctrine. Or, will it? You place your bet.

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