Economics, Taxes and Spending

Sorry, conservatives: Tax rates are going up

Image Credit: Nick Knupffer (Flickr) (CC BY-SA 2.0)

Image Credit: Nick Knupffer (Flickr) (CC BY-SA 2.0)

From my latest article in The Atlantic:

Given that our structural deficit overwhelmingly reflects a spending problem and not a revenue problem, it is unfortunate that the Democrats have succeeded in making the opening battle in the fiscal cliff a fight about tax rates. But succeed they have. We won’t have a serious debate about spending before we’ve determined the marginal income tax rates paid by the top two percent of Americans.

Though some Republican members of the House and Senate have signaled a willingness to raise tax revenue and even tax rates, it remains far from clear whether the Republicans will agree to President Obama’s demand that rates on the highest-income 2% of Americans increase. The Republicans are wrong to be so opposed to raising rates. In fact, they should unequivocally accept rate increases.

It has been said that a conservative is a liberal who has been mugged by reality. Conservatives risk acting like liberals if they do not acknowledge this simple reality: Tax rates are going up. Either we fall off the cliff and the rates return to where they were under President Clinton, or we cut a deal that keeps rates lower than they were in the 1990s.

It’s really just that simple.

Read the rest here.

3 thoughts on “Sorry, conservatives: Tax rates are going up

  1. If the Conservatives think we have a spending problem WHERE the hell are their proposed cuts?

    these guys are feckless. Who in the world advocates cuts and then says the other guy has to name them?

    We are 16 trillion in Debt and the Conservatives simply do not want to be responsible and pay it off.

    what kinds of losers help create the debt under Bush and now don’t want to pay for it?

    • Conservatives have plenty of ideas. You must be talking about Republicans (particularly House GOP leadership). In which case, I agree with you.

      • @Greg – touche! Yes…when the GOP had real fiscal conservatives in their ranks instead of the feckless impostors who now inhabit their ranks – I was much more inclined to vote for them.

        A principled fiscal conservative who believes reforms need to be made to entitlements SHARES his ideas .. PROMOTES his ideas instead of calling for others to offer cuts.

        The GOP is a bunch of unprincipled louts these days.

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