The Washington Post reports that the analysts for the non-partisan Congressional Joint Committee on Taxation have been crunching some numbers on both the Democratic and Republican tax proposals. With that Bush tax cuts due to expire, we need a new plan.
As WaPo's Lori Montgomery reports...
A Republican plan to extend tax cuts for the rich would add more than $36 billion to the federal deficit next year -- and transfer the bulk of that cash into the pockets of the nation's millionaires, according to a congressional analysis released Wednesday.
Hmmm. But I thought Republicans were against (right now) any kind of deficit spending... except for wars and associated profiteers, of course. Anyway...
New data from the nonpartisan Joint Committee on Taxation show that households earning more than $1 million a year would reap nearly $31 billion in tax breaks under the GOP plan in 2011, for an average tax cut per household of about $100,000.
And the distributions of the tax cuts look kind of like this:
Wow! That sure is a big gray dot there.
Meanwhile, there are some who think both plans are a bad idea...
Given the soaring national debt, many economists deem both proposals unaffordable. Even some Republicans, including Reagan administration budget chief David Stockman and former Fed chairman Alan Greenspan, have urged lawmakers to let them expire and allow income tax rates to pop back up to their levels during the Clinton administration.
Both parties are pushing on. The Democrats want to live up to Obama's campaign pledge not to raise taxes on the middle class. Meanwhile, Republicans are demanding support for their high-dollar plan, despite the deficit and the rather selfish and unseemly "let them eat cake" appearance, because they know that people who make over a million a year are really hurting. Can you imagine having to go from the 25 year old Macallen to the 12 year old stuff? Outrageous!
I'm inclined to roll with the President and the Democrats on this one, but I actually think Stockman and Greenspan are correct.
My husband and I have a combined HHI that is not near a million bucks, but is well into six figures. We work hard, I believe, and are very fortunate to enjoy the lifestyle we do.
For people to say that we, as high-income people, deserve a huge tax break because we will use it to create jobs is a huge load of crap. Sure, we might spend it, but that's not the same as creating jobs. And, frankly, years of Republican and pseudo-Republican (Clinton) policy of Reagan's famed "trickle down economics" didn't really trickle down nearly far enough. It failed most Americans.
Wealthy people need to realize that they are making their wealth in the greatest country in the world, and they have an obligation to pay more than those who haven't had nearly the success (or the inheritance). Giving to charities (for the write off) isn't good enough. Pretty soon, if the wealthy are not careful, there will not be enough people to buy whatever it is that they are selling, so to speak.
Sorry for the rant. I'm just embarrassed that I spent so much time supporting Republicans. I feel like I've screwed over my grandchildren.
Posted by: Barbara Linton | 12 August 2010 at 08:05 PM