Krugman is is on fire today, as he has been for a while, this time talking about the tax cuts.
But, even he makes an essential error that all the democrats seem to be making.
It is not about Bush’s tax cuts, or keeping Bush’s tax cuts or Obama raising taxes.
Bush, for whatever reasons, proposed and got passed tax cuts that expire this year.
That is it.
They will be no more. Any changes in the tax code beyond that are not Bush’s.
So, at the end of this year, there will BUSH’S TAX INCREASES.
That is the status quo, as set in law and signed by President Bush.
If your tax increases next year, it is because of President Bush’s law.
Obama is proposing new, massive TAX CUTS.
They will not be the same as the Bush tax cuts, they are new.
Some of the scheduled BUSH TAX INCREASES will go ahead, as planned by President Bush and the Republican Congress.
So be it. They own it.
I would also like anyone who complains about BUSH’S TAX INCREASES to first convince the rest of us that they know the difference between gross revenue, gross income and gross taxable income.
They should also understand what a marginal tax rate is, and know that FICA is capped.
Then they can explain why the BUSH TAX INCREASES are such a bad idea.