While 99 percent of Montanans see no tax hike, Congressman pitches fit on behalf of
Wall Street and the wealthy few
Helena - Congressman Denny Rehberg--a multi-millionaire and one of Congress' wealthiest members--lashed out yesterday at an adjustment in the Medicare tax that will have no effect on 99 percent of Montanans.
Prior to the new health insurance reform law, only working Montanans and Americans paid Medicare taxes on their payroll. Meanwhile, Wall Street bankers with "unearned" income--like stocks, dividends, interest--paid no Medicare taxes. The new law closes that loophole and ensures the richest Americans are paying their fair share.
Ignoring that the adjustment to Medicare taxes will only affect Americans making more than $200,000 per year (or $250,000 for a couple), Rehberg linked directly to talking points from the Washington, D.C. Republican Party headquarters on his Twitter account. In the talking points, Rehberg predicted that middle class families were at risk of higher taxes if they sell their homes or rent out property.
Rehberg failed to mention that only the profit from a home sale (or other "unearned" income) is counted as taxable income--not the entire value of the sale. Even if an individual Montanan makes an extraordinary net-profit of $100,000 on a home sale, they would see no new tax unless their other sources of income landed them another $100,000 in the same year.
"The bottom line is 99 percent of Montanans will see no tax increases in the new health insurance reform law," said David Benson, Executive Director of the Montana Democratic Party. "But Denny and his rich friends and Wall Street buddies will now have to start paying their fair share along with hardworking Montanans. So it's not surprising to see him pitch a fit and twist the facts to make it look like taxes are going up. Unfortunately, most of us aren't as rich as you, Denny."