Thursday, February 26, 2009

You Will Pay, With the Rich

The 2% Illusion
02/26/09 - OpinionJournal

Take everything they earn, and it still won't be enough.

[edited] If taxes took 100% of the taxable income of everyone earning over $500,000 in 2006, this would have given Congress an extra $1.3 trillion in revenue. That's less than half the 2006 federal budget of $2.7 trillion, and only one-third of the $4 trillion Congress will spend in fiscal 2010.

Taking every taxable "dime" of those earning more than $75,000 in 2006 would have barely yielded enough to cover that $4 trillion.

The bottom line is that Mr. Obama is selling the country on a 2% illusion. Unwinding the U.S. commitment in Iraq and allowing the Bush tax cuts to expire can't possibly pay for his agenda. Taxes on the not-so-rich will need to rise as well.

Mr. Obama's climate-change plans will hit all Americans with higher expenses. Selling cap-and-trade permits to emit greenhouse gases amounts to a steep new tax on most types of energy and so on all Americans.

Mr. Obama portrays his agenda as center-left pragmatism. But pragmatists don't ignore the data. The only way to pay for Mr. Obama's ambitions is to reach deeper into the pockets of the American middle class.

No comments:

Post a Comment

You can use the HTML tags <b> <i> and <a href="">, but not <p>. Trouble commenting? Email your comment or problem to Commerce-Try at Leave out the minus sign. Mention the name of the post in the email.