Okay, lots of wailing and gnashing of teeth concerning this issue. But what to do about it in a common sense sort of way. I mean, do you want fairness at the expense of jobs and economic growth? Hope not.
Income inequality is about earned income, President Obam wants to raise the top tax rate for the top 2 earners to 36% and about 40%. But he also wants to reinstate the Pease provisions which cap deductions and exemptions, so there's another 2-3% on top of that. And then there's the 3.8 Medicare tax increase in ObamaCare starting in 2013 I think. That's a lot of tax increases and doesn't include higher state and local taxes. AND Obama is now talking about raising the income ceiling for paying Social Security taxes from $106,800, which adds more to the tax burden depending on what they change it to. Do you really think you can do all that and not suffer any economic consequences? Do you really think federal revenue will increase in a linear fashion? Why do you think every other developed country is cutting taxes and spending? ALL OF THEM. To raise taxes this much means you can kiss new businesses and expanding businesses here goodbye. Those rich guys are pretty good at hidingtheir money or putting it in tax sheltered places. You ain't going to get as much of it as you think.
Look, this needs to be done in a measured and sensible approach, you can't be raising taxes that much in the span of 2 years if you want to avoid a slowdown or recession. Ideally we'd go to a flat tax, but there doesn't seem to be an appetite for that. So, the next best thing is to leave the rates where they are for now and start looking at the tax code for places to cut for both individuals and corps. Then phase in tax hikes gradually, making sure the economy is on stronger footing.
Personally I think taxes are as high as they should go and no higher. But we do have a budget to balance and a debt to pay off, so more taxes need to be collected one way or another. But I don't think we should raise taxes one single penny until the federal gov't cuts spending first. We cannot live with a 1.6 trillion annual deficit. Show me 3 dollars of cut spending before you get one dollar of more tax money. Okay, maybe we can't do a trillion dollars in cuts in one year, but we gotta do better than a measly 38 billion.
Income inequality is about earned income, President Obam wants to raise the top tax rate for the top 2 earners to 36% and about 40%. But he also wants to reinstate the Pease provisions which cap deductions and exemptions, so there's another 2-3% on top of that. And then there's the 3.8 Medicare tax increase in ObamaCare starting in 2013 I think. That's a lot of tax increases and doesn't include higher state and local taxes. AND Obama is now talking about raising the income ceiling for paying Social Security taxes from $106,800, which adds more to the tax burden depending on what they change it to. Do you really think you can do all that and not suffer any economic consequences? Do you really think federal revenue will increase in a linear fashion? Why do you think every other developed country is cutting taxes and spending? ALL OF THEM. To raise taxes this much means you can kiss new businesses and expanding businesses here goodbye. Those rich guys are pretty good at hidingtheir money or putting it in tax sheltered places. You ain't going to get as much of it as you think.
Look, this needs to be done in a measured and sensible approach, you can't be raising taxes that much in the span of 2 years if you want to avoid a slowdown or recession. Ideally we'd go to a flat tax, but there doesn't seem to be an appetite for that. So, the next best thing is to leave the rates where they are for now and start looking at the tax code for places to cut for both individuals and corps. Then phase in tax hikes gradually, making sure the economy is on stronger footing.
Personally I think taxes are as high as they should go and no higher. But we do have a budget to balance and a debt to pay off, so more taxes need to be collected one way or another. But I don't think we should raise taxes one single penny until the federal gov't cuts spending first. We cannot live with a 1.6 trillion annual deficit. Show me 3 dollars of cut spending before you get one dollar of more tax money. Okay, maybe we can't do a trillion dollars in cuts in one year, but we gotta do better than a measly 38 billion.
