Just When The Rich Trembled, Nothing To Fear?

In General Interest by Jonathan Tasini0 Comments

I’m not sure if this is true — I treat anything written in The New York Times on economics with a grain of salt. But, it’s worth considering that the rich have nothing to fear but that’s not a surprise.

It’s not as bad as we’ve heard for Poppy Jr.:

President Obama’s insistence that marginal tax rates rise for families making more than $250,000 has convinced millions of affluent Americans that they are likely to be writing larger checks to the government next year.

But many of those families have no reason to fret.

A close look at the president’s plan shows that a large majority of families making up to $300,000 – as well as hundreds of thousands of families with even larger incomes – would not pay taxes at a higher marginal rate.

Because the complexity of the tax code makes it difficult to draw clean lines, they are the beneficiaries of choices the administration has made to ensure that families earning less than $250,000 do not pay higher rates.

One reasons I give this some credence is this quote from Bob McIntyre, who is an oracle on taxes:

“They wanted to be able to say that ‘Absolutely nobody making less than $250,000 could possibly pay higher taxes under our plan,’” said Bob McIntyre, the director of Citizens for Tax Justice, a liberal advocacy group “So they had to assume the most ridiculous assumptions, that even if you’re a childless couple with no itemized deductions making $250,001, your taxes still won’t go up. They figured that if this couple existed and their taxes went up, somebody would find them and jump on ‘em.”

Of course, the whole tax hike is a sham in the bigger sense: even if the top rate went back to the Clinton era 39.5 percent, it would still be too low.

Leave a Comment