The Bush Tax cuts, set to expire early next year, are the source of major debate within not only Congress, but many households and the blogosphere around the Nation. The Republicans do not want to separate the middle class tax cuts from the wealthiest Americans because they know that if they do the majority of the general public would demand taxes lowered for those earning less than a million per year while increasing the taxes on those earning above a million. One group represents the votes to get elected and the other represents major donors to campaign finances. They want their cake and to eat it too. What they tend to forget is that the average American household does not enjoy the loopholes and dodges the richest earners do which is why the middle class actually pays a higher percentage of their income in taxes than those who can afford it better actually do-almost twice as much! This was first brought to our attention back in 2007 by Warren Buffet when he revealed that as a billionaire he only paid 16% in income tax while his secretary paid 33%; hardly fair by anyone's standard.
Fast forward to the lame duck session of Congress which is taking up the issue of the Bush Tax cuts; some Democrats have proposed raising taxes on the wealthy while making the middle class tax cuts permanent. Most Republicans are refusing to even consider it. My question is "Why?" since it would do two things:
1) Raise needed capital for the offsetting of the deficit, and
2) Close the unfair gap in tax rates between the two classes.
Of course this won't actually raise the tax on the rich to the point that we all will pay the same amount percentage-wise of our income to taxes thanks to the aforementioned loopholes and tax breaks on investments, but it will make it a little closer to what it should be. The question is will these Republicans step up to the plate and shoot themselves in their begging hand or continue to pander to the rich puppeteers? Somehow I doubt it. Only public demand to eliminate the onerous tax code that allows these rich people and mega-corporations to skate by while those households and small businesses with less disposable income continues to prop up our government spending spree will end this injustice. Raise the tax rates to the same levels across the board and let those who have benefited the most from our capitalistic society pay their fair share. This, combined with severe cuts in the budget should eventually lead to lower taxes as the rich begin supporting candidates with a more austere attitude when it comes to spending money which they know they will actually have to pay their fair share of-just like the rest of us......