More on the Coming Tax Increases

Some Thoughts About the Pending Tax Increases

© 2010 Rick Adamson

By Rick Adamson 9.12.10

The Democrats constantly refer to the Bush tax cuts as tax cuts for the rich. That is a lie. The majority of the tax reductions went to those in the not so rich category.

It has been reported that by letting the Bush tax cuts expire Government revenue would increase by $700 billion per year. It has also been reported that of that figure about 10 percent would come from those making over $250,000 per year.

That leaves 90 percent or $630 billion to be paid by the rest of us. So much for the promise of no new taxes on the middle class.

It, therefore, seems logical that if 90 percent of the tax increase (resulting from the expiration of the Bush tax
cuts) will come from the not so rich then 90 percent of the tax reductions went to these same not so rich people in the first place. This proves that the Bush tax cuts were not only for the rich.

The Bush tax cuts were not such a bad idea. They removed the marriage penalty, increased the child tax credit, made the death tax much more reasonable and reduced the tax rates for everyone, among many other good things.

For example, it has been reported that almost 50 percent of taxpayers do not pay any income taxes. Thanks go to Bush not Obama. This percentage will go down if the Bush tax cuts are allowed to expire and cause more folks to pay tax.

If Obama is so hell bent on taxing the rich just make one simple change. Make the Bush tax cuts permanent and add a new tax bracket for income over 250,000—39.6. Stop.

In addition, in my personal opinion, the estate tax should be reinstituted for estates above $5,000,000 with a maximum rate of 35 percent.

As an aside, the problem with our deficit is not so much the tax cuts but the fact that Government spending increased so much. Spending increases have exceeded the effect of the tax cuts by nine times.

Lastly, we could just scrape the whole damn mess and put in the Fair Tax Plan. To read about that select the “A case for the Fair Tax Plan” post.