One of the common arguments for reverting to the older higher tax rates pre-Bush for families making over $250,000 is that “it’s only the top 2%” of households, so it affects so few people. As illogical as that argument is and the fact that it is devoid of any consideration of the collateral damage of increasing taxes on thousands of business owners (you know, the ones who create private sector jobs instead of the government jobs we keep adding), the message is usually the same politically – give stuff away to the largest number of people while taking from the smallest and it’s all good. After all, that’s the best move politically, right?
Well, surprisingly, as this recent Rasmussen poll indicates, fully 51% of the respondents actually favor extending the tax cuts for the wealthy as well. What? Surely, 51% of the US population doesn’t make that kind of money. So, perhaps Americans are figuring that raising taxes during a tepid recovery (still feels like a Recession to most) is unwise, especially on those who are hiring and firing workers in the private sector. While the left pundits say, “that’s just people being delusional thinking they’ll make that kind of money someday”, perhaps there’s more at play here. Perhaps people feel a sense of right and wrong, perhaps they fear the impact on the economy, maybe Americans aren’t all idiots? This 51% is actually an increase from an August poll where 48% favored extending the tax cuts to all, regardless of income.
I’m not so naive to believe we’re going to grow our way out of this by cutting taxes continuously to near zero in a tax free-for-all. Realistically, everyone’s taxes are going up eventually while government services decline – it’s a mathematical certainty. But the administration only seems to focus on continued dumb stimulus projects, extending unemployment forever and trading it for higher taxes to millions of business owners. These constant money grabs and redistribution of wealth only go so far and the cycle’s a bit played out it seems – even politically now.
That’s half the country voting against something on the surface, only impacts the top 2%! Maybe they’re on to something…that taxing only the rich will actually hurt the rest of us. Here’s how I think the Bush Tax Cut expiry will play out.
What do you think?