As if we needed a reminder…Tuesday’s Wall Street Journal reminds us what tax policies the democrats want to enact by letting the 2001 and 2003 tax cuts expire.
“If they do, statutory marginal tax rates will rise across the board; ranging from a 13% increase for the highest income households to a 50% increase in tax rates faced by lower-income households. The marriage penalty will be re-imposed and the child credit cut by $500 per child. The long-term capital gains tax rate will rise by one-third (to 20% from 15%) and the top tax rate on dividends will nearly triple (to 39.6% from 15%). The estate tax will roar back from extinction at the same time, with a top rate of 55% and an exempt amount of only $600,000. Finally, the Alternative Minimum Tax will reach far deeper into the middle class, ensnaring 25 million tax filers in its web.”
This will drive the personal income tax burden up to 25%. In the half century where America fought in Vietnam, Korea, sent man to the moon, crushed unemployment to below 5%, built the greatest army in the world, and funded liberal welfare movements such as “Great Society”, the personal income tax burden has been 7.9%.
What the hell are we getting for the 16% percent increase in personal burdens?