Sunday, February 24, 2013

Only The Little People Pay Taxes

There have been lots of comments on the latest from David Brooks with my favorite being how Kevin Drum reacted to this:
My fantasy package, and I'm not running for office, would include a progressive consumption tax, and it would have chained CPI, and it would have a pretty big means-test of Medicare.
Kevin correctly noted:
Still, I have to chuckle when he complains about Obama not proposing a "politically plausible" plan, and then offers up an alternative that includes a progressive consumption tax, something that Republicans have been unrelentingly opposed to for decades in any reasonable form.
In the current negotiations that David Brooks and Ezra Klein were discussing, it is clear what the hold up is. The President is willing to accept some spending cuts if the Republicans accept a few roll backs for the preferential tax treatment for capital income but the Republicans have been steadfastly opposed to anything that would raise the tax bite for the ultrarich. This is nothing new as this has been the political debate for over 30 years. And the next time you hear a pharmaceutical executive complain about rising tax burdens - remember that their effective tax rate is likely to be less than 25 percent.

1 comment:

Poelinggb Yuette said...

If you had the choice between taking out $40,000.00 of your inherited cash which is part of a larger IRA to pay off debts (but did not have to sell stocks to get that $ & your tax bracket is $15% but perhaps less since I am on SSD & earn less than 14,000.00 a year) or take out a 9% re-fill on a 2nd home, which is being rented for $1000.00 a month that will be sold in 3 years with a contract)- is it as simple as comparing interest rates to decide that a 9% re-fill is a better deal than a 15% deal? ( the 9% is non-negotiable as I can only get a "no doc/no asset loan" at that 2013 tax bracketsunfortunately)or are there other matters to consider.