Democrats seek to isolate Republicans with narrow tax-increase targets

[question everything]

Democrats seek to isolate Republicans with narrow tax-increase targets.

House Speaker Pelosi identifies $500,000 earners -- a more exclusive group than party leaders have previously targeted -- as source of revenue for cutting middle-class taxes. Imposing pre-Bush 39.6% rate on those with incomes over $500,000 would raise more than $85 billion over four years, Tax Policy Center estimates.

White House sees any tax increases heightening Democrats' vulnerability. Crediting Bush cuts with fueling growth, ranking Senate Finance Committee Republican Grassley asks, "Why would they want to kill the goose that laid the golden egg?"

"The upper-class squeeze -- now that's an issue Republicans can run on," taunts former Bill Clinton aide Bruce Reed.

From WSJ's Washington Wire

http://online.wsj.com/article/SB116855210977874353.html?mod=todays_us_page_one (subscription)

[Solo_in_MD]

1. The AMT still has to be dealt with, one way or another...

[Richardo]

2. A question I've never had answered to my satisfaction:

How do personal tax cuts for the wealthy fuel the growth of the economy? Tax cuts for businesses I can see. But PERSONAL taxes? I don't think those are being plowed back into their businesses - I think they're buying newer toys.

[deadmessengers]

3. The idea is...

that those newer toys have to be made by someone, and that fuels job creation, and creates a ripple effect throughout the economy, including increased tax revenue. That's the idea, at least, although it seldom works out that way - the very wealthy are socking that money away (so they can leave it, tax-free, to their children) or investing it in MegaGlobalCorpInc in order to make more (minimally-taxed) capital gains cash.

Very, very little of that money ever really does make it back into the economy. On the other hand, almost every cent of a middle-class tax cut would make it into the economy.

[BayCityProgressive]

4. HAHHAHAHAHAHAHAHAHAHAHA

"White House sees any tax increases heightening Democrats' vulnerability. Crediting Bush cuts with fueling growth, ranking Senate Finance Committee Republican Grassley asks, "Why would they want to kill the goose that laid the golden egg?"

PLEASE TELL ME GRASSLEY IS JOKING!?!?!?!?? The Goose that lays the rotten eggs more like it! There is nothing golden about our economy!!!

[Igel]

5. Having a really progressive income tax is something I'm leery of.

California had an income tax crunch a while back. It had a very progressive income tax, with the poorer 50% of the population contributing very little to the budget.

The old wealthy had their money sheltered, so count them out. It was the relatively newly wealthy--mostly wealthy because of large salaries, a few hundred thousand per year and above--that paid a disproportionate share, by nearly any measure.

The economy had a downturn that hit mostly the investor class and the top wage earners, and the newly wealthy lost their jobs disproportionately often. And the state learned the lesson that reliance on a few per cent of the population for a large chunk of the budget is short-sighted. (Then as soon as the downturn ended, collective amnesia set in--the only reason the legislature didn't repeat its foolishness was that the situation on the ground didn't allow it.)

[gulliver]

6. America is the goose that laid the golden egg.

I have nothing against the wealthy, but it is insulting to give them all the credit for prosperity. The Republicans are the farmer that kills the goose that lays the golden egg: America. That role assignment fits the fable to a tee.

[question everything]

7. Besides, you cannot give a tax cuts and run an expensive war

such tax cuts should be suspended at least for the duration.

[Vickers]

9. That is exactly how it should be presented: "Tax cuts for super-wealthy..."

"...to be suspended for the duration of the War On Terror. Support Our Troops!"

[Toots]

8. "Why would they want to kill the goose that laid the golden egg?"

As our National Debt increases so fast the numbers are an absolute blur. We pay more in Interest on our Debt than we do for all Social Programs combined.. Golden Egg my ass.