From the Editorial Board: As Democrats finally discovered reality and got some legislation moving, some mighty spurious arguments over the climate and energy bill emerged on both sides of the aisle.
Senate Majority Leader Chuck Schumer gives two thumbs-up after Democrats passed a climate, tax and health care spending package on Capitol Hill on Aug. 7, 2022. The Senate approved the sweeping measure after a grueling overnight session.
Let’s review. We must all pay taxes. Some of us cannot be trusted, and thus the IRS must have the power to verify self-reported income and expenses on a reasonably expansive basis.Certainly, the IRS must conduct itself ethically and not hound taxpayers unfairly. It makes sense for it to use the majority of its resources on returns that give the government the most bang for the buck.
Sinema, it seems, single-handedly nixed the nixing of the so-called carried-interest provision in the bill. In simple terms, this perk allows the hardworking Americans who toil in the sweaty fields of private equity to pay their taxes at the lower rates that apply to capital gains, rather than the higher earned-income rate that we hourly and salaried stiffs must endure.
Let’s be clear: We appreciate those who provide funding for many entrepreneurial activities in this nation and wish them success. We just think they should pay taxes at the same rates as everyone else.