Patriotic Millionaires Explain That Tax Cuts for the Rich Don't Grow the Economy

[babylonsister]

http://www.thenation.com/blog/156569/patriotic-millionaires-explain-tax-cuts-rich-dont-grow-economy

Patriotic Millionaires Explain That Tax Cuts for the Rich Don't Grow the Economy
John Nichols
November 20, 2010

snip//


Let's bring in some millionaires.

In a letter to President Obama, members of the group Patriotic Millionaires for Fiscal Strength argue that it is time, again, to tax the rich.

"We are writing to urge you to stand firm against those who would put politics ahead of their country. For the fiscal health of our nation and the well-being of our fellow citizens, we ask that you allow tax cuts on incomes over $1,000,000 to expire at the end of this year as scheduled," they write. "We make this request as loyal citizens who now or in the past earned an income of $1,000,000 per year or more. We have done very well over the last several years. Now, during our nation’s moment of need, we are eager to do our fair share. We don’t need more tax cuts, and we understand that cutting our taxes will increase the deficit and the debt burden carried by other taxpayers. The country needs to meet its financial obligations in a just and responsible way."

"Letting tax cuts for incomes over $1,000,000 expire, is an important step in that direction," conclude the more than three dozen millionaire signers of the letter, a group that includes a number of Google executives, active CEOs and philanthropists such as Ben & Jerry's co-founder Ben Cohen.

Millionaires know how to work with numbers. And the Patriotic Millionaires are sharing a few numbers with members of Congress who might be interested in making policy based on facts rather than a hunch. For instance:

• Only 375,000 Americans have incomes of over $1,000,000.

* Between 1979 and 2007, incomes for the wealthiest 1 percent of Americans rose by 281 percent.

* In the 1950s and early 1960s, a period when growth was high and unemployment was low, millionaires had a top marginal tax rate of 91 percent.

* In 1976, millionaires had a top marginal tax rate of 70 percent.

* Today, millionaires have a top marginal tax rate of 35 percent.

* Reducing the income tax on top earners is one of the most inefficient ways to grow the economy, according to the nonpartisan Congressional Budget Office.

* Letting tax cuts for the top 2 percent—which were never meant to be permanent—expire as scheduled would pay down the federal debt by $700 billion over the next ten years.

Those numbers of worthy of note. Worthy enough to suggest that congressional Republicans would be well advised to take their cue from the rich when it comes to tax policy—so long as the rich folks we're talking about are Patriotic Millionaires.

[Atman]

1. One caveat; the cut-off is $250,000, not $1,000,000. Significant difference.

I doubt this is any kind of oversight. They're actually trying to provide Obama some cover.

[mtnsnake]

2. Amen. You beat me to it

I like it that some millionaires are equating patriotism with paying higher taxes, but I don't like it that they are compromising Obama's message of letting all tax cuts expire for anyone making more than $250,000.

If we do it the way the Patriotic Millionaires are suggesting, Republicans will still be able to say "Obama raised taxes", leading to the perception among so many of the brain-dead voters that he raised taxes on everyone. So there should be no compromise because they are going to say we raised taxes period, whether we raise them on all rich people or on only a small fraction of them.

[LiberalFighter]

3. If someone is trying to suggest an alternative then I will one up them.

Let the tax cut for those with $1 million or more expire. 39.6%
Let the tax cuts for those with less than $250k continue. 33% and less

But let the tax cuts for those with $250k to $1 million be the difference. 36.3%

Then the tax brackets will be 10, 15, 25, 28, 33, 36.3, and 39.6%.

And anybody that says that makes it more complicated to compute their taxes are full of shit.