In an article published in April, the Wall Street Journal said that “Obama targets the middle class while pretending to tax only the rich.” I’ve heard this argument several times in the last week: raising taxes on the rich doesn’t solve the federal government’s deficit problem. In fact, if the government were to take every dollar that each rich person makes, it would only raise about $1 trillion. “The mathematical reality is that in the absence of entitlement reform on the Paul Ryan model, Washington will need to soak the middle class—because that’s where the money is.”
We all know that putting a 100% tax on incomes over $250,000 would be a HUGE problem for the economy (because there would be absolutely no incentive to work once you’ve crossed that threshold), so you’d probably end up re-defining what “rich” is to include people further down the income ladder… i.e. people who are considered “middle class” right now.
Along these same lines, here’s an interesting video from the Center for Freedom and Prosperity, discussing Seven Reasons Why Tax Increases Are the Wrong Approach:
(If you are having trouble viewing this video in your RSS reader or email, click here to see it in your browser)
Question: Do you think we’ll end up taxing the middle class to pay for Medicare, Medicaid, and Social Security? Do you think your taxes will go up?