A balanced, multi-faceted look at the Democrats tax regime. Sourced from a spread of liberal and conservatives, the general thesis is that the Democrat's current plan of raising taxes on only the wealthiest Americans can not make up for the massive budget deficits America faces now and in the future. There's also excellent discussion of the value of using the progressive tax code to fix what are more fundamental issues in the American economy.
The Democrats’ strategy has a certain cake-and-eat-it-too quality. They insist, despite evidence to the contrary, that the government can expand services and shrink the deficit while simultaneously cutting taxes for the middle class below the levels reached during the Bush administration.
Economically and politically, though, using the tax code to try to close the income gap makes perfect sense for Democrats. During the past three decades, income inequality expanded dramatically while middle-class wages stayed relatively flat, stoking frustration among workers. The gap between the very rich and everyone else grew especially pronounced. In 1980, the top 1 percent of taxpayers collected 9.1 percent of the country’s pre-tax income. By 2006, the income share for those at the pinnacle had more than doubled, to 18.8 percent.
the administration’s position may have this unintended consequence: It will be difficult, without taxing people of lesser means as well, to generate sufficient revenue to reduce the deficit while expanding access to education, combating climate change and providing more Americans with health insurance.
