Friday, February 22, 2013

New York Times Calls for 35% Tax Hike on Middle Class


Today's editorial in the NY Times calls for at least a 35% increase in taxes on the middle class. Welcome to your liberal paradise.

Specifically, the Times says,
new taxes on high-income Americans are a matter of necessity and fairness; they are also a necessary precondition to what in time will have to be tax increases on the middle class. 
It also shares one of the reasons it is so intent on raising taxes on the millionaires and billionaires who make more than $250,000 per year.
there will never be a consensus for more taxes from the middle class without imposing higher taxes on wealthy Americans
So there we have it, the Times finally admits what I have maintained for quite some time, the real goal of this administration is increased taxes on the middle class.

How high will taxes need to be to pay for our liberal Shangri-La?

This graph is from the CBO's Budget and Economic Outlook for Fiscal Years 2013-2023.

 Current tax revenues about 17% of GDP. Projected outlays in Fiscal 23 about 23% of GDP, taxes have to go up about 35%. But wait, there's more. Projected outlays rise sharply after 2023 and consume upwards of 30% of GDP, necessitating a doubling of taxes.

Sequester looks pretty darn good from my perspective.


1 comment:

  1. What's particularly frustrating about this is the typical inconsistency. The recent rhetoric had been about saving the middle class from disappearing, partially by maintaining the Bush tax cuts for the middle class. Now that all appears to be a farce. I wish someone would just stand by a single position. These sorts of flip-flops are what drive my pessimism about our political parties. They give every indication of having some ulterior plan that they want to implement, with all the campaign slogans being merely an expedient to get into office so they can implement their real plan.

    As far as sequestration goes, I don't understand why liberals are so against it. From my semi-liberal, pseudo-libertarian perspective, sequestration is the best way to achieve a desperately-needed cut of defense spending, which is an opportunity guaranteed not to arise again as long as the Republicans have any control.