Riddle me this

Katrina vanden Heuvel:

” The $60 billion each year in Bush tax cuts for the richest Americans could pay for universal preschool for America’s children, or tuition and board for half of America’s college students.

Why would we want to do that?

Why should the taxpayers (I mean, of course, the 50% of folks that actually pay taxes) subsidize childcare or part of the expenses of other folks college education?

Hardest hit? The poor.


You know, with all the talk about who is mad at President Barack Obama and who stands to win or lose what election over this tax-cut deal, not as much attention has been paid to the practical beneficiaries of the deal. Well, over at The New York Times tonight, David Kocieniewski’s got the hard numbers, and finds that the deal is actually a very good one, as long as one or more of the following terms describes you:

–“the highest earners”
–“the wealthiest 1 percent of the population”
–“the wealthiest Americans”
–“hedge fund managers and private equity investors”
–“an individual earning $110,000”
–“4 million taxpayers with income in the mid- to high six figures”
–“Estates over $5 million”

To those of you who fit the descriptions above, congratulations! Really, is anyone not making out like a bandit, with this tax-cut compromise?

The above could also used to be described as the folks who pay most of the taxes collected.

In fact, the only groups likely to face a tax increase are those near the bottom of the income scale — individuals who make less than $20,000 and families with earnings below $40,000.

OMG, the horror! How could this possibly happen?

Although the $120 billion payroll tax reduction offers nearly twice the tax savings of the credit it replaces, it will nonetheless lead to higher tax bills for individuals with incomes below $20,000 and families that make less than $40,000. That is because their payroll tax savings are less than the $400 or $800 they will lose from the Making Work Pay credit.

“It will come to a few dollars a week,” said Roberton Williams, an analyst at the nonpartisan Tax Policy Center, “but it is an increase.”

Someone making $20,000 has a tax bill of …. $779 bucks. Taken weekly, that’s $13 a week. You know, $13 for roads and police and social programs. Not a bad deal!

Someone making $20,000, with one child has a tax bill of … nothing.

Everyone needs to have skin in the game. Everyone. Even if it’s only $13 a week.

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2 Comments on “Riddle me this”

  1. MJ Says:

    My guess is that Katrina what’s her name just go the tuition bill for her 19 year old and would like that taken care of. Ivy League schools are expensive.

  2. Car in Says:

    I heard Rush read part of this yesterday, and we I heard that I almost drove off the road.

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