Extraordinary Op-Ed in the Wall Street Journal, that I think all of you should read.
The general premise is that it will be impossible to tax the rich high enough in order to pay for Obama's spending concerns. I've been telling you guys this for a while - if taxes are going up for the rich, trust me, your tax hike will soon be following. Not to mention 45-55% of small business revenue. The article also mentions how the cap and trade idea will yield yet another steep de facto tax increase for all energy users.
"Subsidizing the rich" - James, they pay most of the taxes. The "poor" couldn't possibly ever subsidize the rich - it is a financial impossibility. That point aside, what do you mean by "equitable" when the rich pay a vast portion of the taxes, and always have? I'm begging though - please don't tow the economic justice line... it is not and never has been evil or wrong to be rich, and generally speaking this is the default attitude towards the affluent amongst the left. Another tax that will remain - the death tax. This is one of the most immoral taxes in human history.
The Iraq money still won't cover the debt, James. Even if things go swimmingly and perfectly well, current budget estimates are praying to Lord Jeebus for 'only' a $533B deficit by 2013. The budget is essentially banking on a swift recovery, and if there is none, those deficit estimates will be way, way off.
I will at least give Obama credit for including the Iraq money in the budget finally. Take a look at the chart on the top of Drudge today, which indicates what the budget deficit will be, and where it may be revised to. Realistically this is a skewed chart because the deficits prior did not include the Iraq money... it is better and more honest the way Obama is doing it.
The article was right on the money. Because you pay attention and keep an even keel on this stuff, you certainly understand that everyones taxes would be going up, but Obama told you and everyone else that the middle class would not get a tax increase. Given what Obama wants to do, that is an impossibility and he's telling people lies by stating that the middle class is safe. Another issue that nobody is talking about - $56 TRILLION in unfunded liabilities. That is going to be impossible to deal with without extraordinarily oppressive taxation, severe cuts in benefits, or some combo of the two. The truth is that not only will taxes be going up for the middle class, but in fact consumption will be more expensive as a result of cap and trade legislation. Energy prices affect everything in our economy.
Also, a lot of this money being spent by the stimulus won't be temporary as they claim it will be. Do you really think that the Democrats will double education spending 'temporarily,' or expand unemployment benefits and welfare 'temporarily,' or raise taxes 'temporarily?' More fuel for the middle class tax fire.
Nobody is talking about monetization of the debt, which is another strategy that will may occur to a great extent anyway, and will cause severe inflation.
Whoever wrote that article failed to realize that most of the money used to pay off the debt will come from money now being spent on Iraq.
Those of us who live in NYS live in a regressive tax structure. Obama letting the Bush tax cuts expire goes a long way towards a more equitable tax structure.
Besides, you argue that if we tax the rich, the rest of us will follow. However, it is impossible not not tax the rich and not have our taxes increase if more money is needed to pay for the stimulus. Either way, there is more taxes. And if given a choice between the two I would rather not subsidize the rich by carrying an added tax alone.