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Comment by Patricia M. McBride on April 14, 2012 at 3:07pm

As you ladies both have small companies, and I do not, I am not really able to add to what you are saying but do find it of great interest!  Thank you both for sharing your opinions as it does help inform others from a small business perspective. 

Comment by tamara stephenson on April 14, 2012 at 1:56pm

Reagan cut taxes immensely in 1981.  However, spending continued, so over the course of his next 7 years in office, he raised taxes 7 times; it never got back to where it was before '81, but he did roll back many cuts and had major tax reform in 1986, doing away with tax shelters, loopholes, etc.  As for Warren Buffett, i am sure he pays regular income taxes on his earned income.  But, as a manager of funds, he reaps the benefits of the capital gains tax of 15%, and like most hedge fund managers, even if your job is managing money, he still gets the 15% rate.  I believe everyone should pay fair taxes; corporate lobbying has made big companies get all of hte loopholes, while small S-corps like mine have a flow-through rate.  So, when my company shows a profit, I pay taxes at the individual level.  Believe me, we try to empty the bank account at the end of every fiscal year so that if we are going to pay the tax, we actually get the money in our individual accounts.  When you look at the progressive rate, I have an effective tax rate this year of 30% of my income.  Yes, I did well financially and I worked like a dog.  I don't mind paying my fair share.  but when I look around and see the truly wealthy paying 14%, and I know it's because they bought off some congressmen to write loopholes in the taxcode just for them, it makes my blood boil.