There was a class war. The rich won.
Felix Salmon says:
If you were structuring a tax code from scratch, it would look nothing like this. But the problem is that tax hikes seem to be politically impossible no matter which party is in power. And since any revamp of the tax code would involve tax hikes somewhere, I fear we’re fiscally doomed.Digby says:
If I were you, I would print out this post by Felix Salmon and pull it out whenever you confront some bozo who's railing about the deficit and insisting that we have to put old ladies on a cat food diet to fix the problem.Specific policy proposals in addition to letting Duhbya's tax cuts expire above $250,000 of income:
- Once unemployment is below 7%, make the income tax more progressive with a 50% marginal tax rate on incomes over $1 million, to be lowered to 40% when the deficit (not including any surplus from Social Security) is lowered below 2% of GDP (currently, it's about 10% of GDP).
- Make the payroll taxes less regressive immediately by removing the income cap on taxes subject to FICA, Medicare, etc.
- Reinstitute the Paris Hilton tax at 50%, closing the loopholes that have allowed the lazy children of extreme wealth to escape taxes on their parents' estates, but raise the estate size floor to $4 million and index it for inflation.