The Democrats in the Senate have passed their tax plan, extending the Bush tax rates for families making under $250,000 for one year while allowing the rates for families earning above $250,000 to expire.
The big Democratic claim has been that in order to balance the budget richer people have to pay more of their fair share. Okay, so now they’ve made their point by law. If I were the Republicans I’d accept it, since we all know that this tax increase on higher income taxpayers will do nothing to lower the deficit. We could raise the tax rate for anyone earning more than $250K to 100 percent and we would still have a gigantic yearly deficit.
What will the Democrats next claim when this tax increase fails? It won’t matter. The problem is spending, and the failure of this tax plan will further demonstrate that point. The federal government has to learn to live within its means.