Ken's Project Blog

August 13, 2011

Matt Damon, on Tax Policy

Filed under: Politics,Taxation — Ken @ 9:58 pm
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First off, I agree with Greg Guttfield – “Don’t blast Damon for answering a question that he was asked” – he wasn’t at a podium pontificating, he was asked a question about taxes and he answered. Blast the reporter for looking to a hollywood star for tax policy insight…

Second, when he claims that he is “socking away” his money, exactly where does he “sock it away”? Perchance the stock market? (investing in the stock market fuels the companies and the investors in the market to create more jobs through expansion) Bonds? (Bonds are used to fund construction projects, those create jobs) Putting it in a bank account? (that give his bank the ability to make home mortgage loans, which again, creates jobs)

Aside from putting money in a mason jar in the backyard, there are very few things he can do with money that doesn’t create jobs.

Finally, his proposed 50% income tax on those that make over $5 million/year – has he really thought it through? That would mean his $20 million movie deals would net him $10.75M, with him writing Uncle Sam a $9.25M tax check. ($20M – $5M = $15M, 50% of $15M = $7.5M – plus, of course, the estimated $1.75M he would owe at the current 35% tax rate which he feels is too low.) And let’s not forget California state income taxes of 11% after the first $1M, so that would deduct another almost $2M off the $20M deal, leaving him with around $9M from his $20M “deal”…

Sources:

tax-rates.org: CA Tax Brackets

YouTube: Matt Damon Says Nobody Who Earns Over $250,000 Starts Business If They Keep More of Their Own

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