14 December 2011

When is a Tax Increase Not a Tax Increase

This is something I've mentioned around these parts before. Allowing a law to expire that will result in higher taxes means you are effecting a tax increase. At least, that's what the Democrats and Obama administration are now saying. If Republican intransigence is allowed to continue and they won't budge on increasing taxes on the wealthy (getting the "millionaires" to pay thier "fair share" of Obama's plan), then the payroll tax cut won't be extended. And the middle-class will be hit with a tax increase.
But they weren't saying that last year, when letting the "Bush Tax Cuts" expire was not a tax increase.
So whether status quo ante is a good thing or a bad thing depends on how much you make.

Are these millionaires really job creators? Would an increase in the highest marginal rates harm the economy?

Stay tuned.

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