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Another Tax Deception - The Bush Tax Increase
Whoa Toto, there they go again. We all know that certain posters on here argue for an ending to the so called “Bush Tax Cuts”. They make it sound as if only the rich would be impacted. They are lying! Many of you already pay more tax today then you would have pre the “Bush Tax Cuts”! They would increase that further!
A quick look at the income tax rate tables (IRS source) and one finds that today the upper half of the middle class has an income tax rate of 25 % (or greater) for income greater than $69K. In 1965 (pre-Reagan) the 25% rate started at inflation adjusted $85 K. Looks to me as if today the middle class is already paying more in taxes than they were pre the “Bush Tax” cut.
How could any intelligent person call the current tax system a tax cut when the middle class is already paying more than they were at one of the high points in our taxation history?
Now in 1965 the 36% marginal tax rate began at in inflation adjusted income of $170K while today the 35% bracket starts at an income level of $379K. This is clearly the reverse of the way we have come to tax the middle class. The rich (greater than $250K or so) have made out like bandits – they and they alone received a big tax cut.
The Republicans have tax proposals that would seemingly reduce taxes for all but (absent real detail) appear to raise taxes on the middle by reducing deductions used primarily by the middle. The President proposes a modest tax increase on the rich (nowhere near 1965 levels) while his surrogates propose substantial tax increases on the middle to address a budget imbalance that the President refuses to address through cuts or meaningful tax increases on the rich.
The guy in the green coat and the fire and brimstone machine has gotten loose again. Neither party proposes to help the middle income taxpayer but both work to focus the middle on marginal issues to protect the elites. Isn’t that what it is all about – protecting the elites.
Don’t let that man in a green suit confuse you. Unfortunately, I think Toto retired. If you don’t want a substantial federal tax increase you better pull back the curtain yourself!