My heart leapt when I saw Tim Russert put the Kennedy “tax cut” chart up on his screen on yesterday’s ‘Meet the Press.’ This is exactly what American economic policy should be:
1. Fiscal responsibility – low interest rates – economic growth.
2. Protect Social Security and provide some funds for things like prescription drug assistance to the elderly.
3. How? By adopting this tax plan:
FIRST 80% of Americans (those with income up to $72,000 a year): KEEP 100% of the tax cut and make it permanent!
NEXT 15% (those of us with income from $72,000 to $147,000 a year): KEEP 99% of the tax cut and make it permanent. (Average annual ‘cost’ to this group in less than originally expected tax cuts: $17.)
Subtotal: for 95% of Americans, last year’s tax cuts would be 99% or 100% preserved and made permanent.
NEXT 4% (income from $147,000 to $373,000): KEEP 87% of the tax cut (all but, on average, $432 a year) and make that, too, permanent.
TOP 1% (those of us with income above $373,000): KEEP 19% of the tax cut for now (which is not nothing – about $10,000 a year, on average) – and provide a larger break if and as it turns out we can afford it.
Is this cruel to those earning more than $373,000 a year? I don’t think so. In the long run, what group of Americans will benefit more from a sound, prosperous economy than the top 1%?
Tomorrow: What They’re Saying In The Official Arab Press
Quote of the Day
It turns out that advancing equal opportunity and economic empowerment is both morally right and good economics, because discrimination, poverty and ignorance restrict growth, while investments in education, infrastructure and scientific and technological research increase it, creating more good jobs and new wealth for all of us.~Bill Clinton
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