Tuesday, April 14, 2009

Why Aren't We Passing Future Tax Increases?

Passing fiscal items for future years seems to be a fairly ordinary thing to do in budgets. The Bush tax cuts were set to expire in the future, and some of the stimulus spending we've passed goes on in the future. So I would've hoped that the Obama administration would use the present moment to pass higher taxes on people who look especially bad at the present moment. If you wanted to set it up so capital gains were taxed equally to income in 2011, or pass some kind of securities transaction tax, or set up a millionaire's tax bracket, this would be the time to push the legislation.

So why aren't we seeing it? Usual menu of explanations: (Obama being chicken / Obama being politically realistic / It's bad policy for some reason I haven't thought of.)
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