Obama's tax plan: Politics as usual
Published: Monday, July 9, 2012, 8:52 p.m.
Call it the Hobson's choice of The Great Tax Debate — shaft the economy now or shaft the economy later.
President Obama on Monday called for a one-year extension of the Bush-era tax cuts for single filers making less than $200,000 and families making less $250,000. It's a matter of “fairness,” he said.
Actually, it's matter of politics; the proposal will be dead on arrival in the House. The president not only further seeks to stoke the furnaces of class envy, he fuels overall tax policy uncertainty that retards the spark of any hoped-for economic recovery.
Don't count on small businesses to jump for much joy. Oh, there might be short-term tax savings, but with only a one-year extension, they really can't plan for any kind of long-term investment and expansion.
And “the rich,” those above the $250,000 threshold, certainly won't be rushing to invest and expand. Individual taxes will rise anywhere from a rate of 33 percent to nearly 40 percent. Capital gains taxes will jump from a rate of 15 percent to nearly 24 percent. And the top tax rate on dividends will go from 15 percent to more than 43 percent.
The better and obvious choice certainly is for the Bush-era tax cuts to be made permanent as the beginning benchmark for true tax purgation — across-the-board rate cuts and elimination of all loopholes.
A pipe dream? Perhaps. But anything less is a pipe bomb that surely will explode and sink the American economy.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
Subscribe today! Click here for our subscription offers.