Wednesday, January 7, 2009
Whose Middle Class
To give Republicans something else to point to when they say "No, Barack Obama, we don't want to cut taxes that way", Mitch McConnell recently floated the idea of reducing the 25% tax bracket to 15%. As the Tax Policy Center points out (PDF), this idea only "helps the middle class" if you define "help the middle class" to mean "give a modest three-figure tax cut to those earning the median household incomes while giving four-figure tax cuts to those earning more than $359,000". What's scary, though, is that I can't figure out why this is the case. Ususally the culprit here is that the middle class pays very little income tax to begin with, but that doesn't explain why the upper middle class gets such a smaller tax break than the hyper rich. Any tax wonks out there who want to help?