Saturday, September 25, 2010

Democrats should run on Bush tax cut issue -


I like Reich. He is an honest liberal economist, but he is also wrong here. Two problems. The top 5% of income earners pay over 53% of income taxes. Taxpayers in the top 50% pay over 94% of all income taxes. So it isn't really unfair to suggest that they might deserve a cut, too. But there is also this: what is the US median income? Answer: about $50,000, give or take. We could even expand it to $75,000 and still leave an interesting question of why Democrats want to keep the tax cuts up to $250,000. Well, consider that upper income professionals from doctors to university professors to lawyers fall in that range, and you hit significant Democratic constituencies. In short, they want to keep those tax cuts because that is where their campaign contributions come from.

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