{"id":335638,"date":"2010-02-18T12:27:09","date_gmt":"2010-02-18T17:27:09","guid":{"rendered":"tag:business.theatlantic.com,2010:\/\/3.36178"},"modified":"2010-02-18T20:45:19","modified_gmt":"2010-02-19T01:45:19","slug":"whos-afraid-of-taxing-rich-people","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/335638","title":{"rendered":"Who’s Afraid of Taxing Rich People?"},"content":{"rendered":"

President Obama is creating a bipartisan commission to reach a consensus on how to bring down the deficit. Michael Tomasky has a great, thought-provoking blog post <\/a>at the Guardian about the mechanics of deficit reduction, but I don’t agree with his take on the politics of tax increases.<\/p>\n

Tomasky beings by pointing out that the top marginal tax rate in the
\n1950s was 91% on income earned above $200,000. Today it’s 35% on income
\nearned over $360,000 (see this interesting PDF chart<\/a>). Tomasky concludes that we should be talking more about raising the top marginal tax rate:<\/p>\n

When Washington talks about the deficit and entitlements, people
\nalways talk about cutting. About living within our means … And if you broach the
\nsubject of what the people at the very top should contribute to the
\nmaintenance of this condition, you’re considered extreme and unserious.\n<\/p><\/blockquote>\n

On the contrary, it seems to me that everybody who doesn’t self-identify as Republican talks quite a bit about making the people at the very top contribute more. House Democrats proposed to pay for health care reform with a
\nsurtax on the top one percent. Obama made it clear as early as 2007 that
\nhe wants Congress to cancel the Bush tax cuts for Americans making more than $200,000 — which is effectively a tax increase. Calling for various new taxes on the rich isn’t extreme, it’s mainstream. Tomasky
\ngoes on to write ..<\/p>\n

\n…the discussion of these matters is always about
\ncuts that will be borne by middle- and working-class people and almost
\nnever about taxes on a class of Americans who’ve been having a
\nfinancial orgy for the last 30 years.<\/p><\/blockquote>\n

I see it the other way around. I see that very few people (Republicans or Democrats) are talking
\nabout cutting services significantly (Paul Ryan, aside) or raising taxes on anybody in the
\nbottom 95 percentiles of the tax bracket (VAT rumors, aside) because that<\/i> would be
\nconsidered politically unserious, or at least political suicide.
\nLook at Obama’s 2011 budget which cuts taxes for 95 percent of the
\nAmericans and raises the top income rate. Look at the House, which in addition to the surtax, has fought the Senate’s efforts to impose
\nan excise tax on expensive insurance plans because they might hit middle
\nclass families in the future.<\/p>\n

To be sure, Tomasky is right that nobody is talking about returning the top marginal tax rate to 91 percent — even he rules that out — and his fundamental point is that Washington is skittish about drastically hiking up the top rate to as high as 50%. But Washington is skittishness about acting drastically about everything. No need for Tomasky to take offense on behalf of tax policy.


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President Obama is creating a bipartisan commission to reach a consensus on how to bring down the deficit. Michael Tomasky has a great, thought-provoking blog post at the Guardian about the mechanics of deficit reduction, but I don’t agree with his take on the politics of tax increases. Tomasky beings by pointing out that the […]<\/p>\n","protected":false},"author":1534,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-335638","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/335638","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1534"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=335638"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/335638\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=335638"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=335638"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=335638"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}