Governor-elect Cuomo supports President Obama's tax rate compromise, as the DC chattering class and their cable news megaphones continues their class warfare debate over weather high income earners should pay 36 or 39% in federal income tax.
The compromise is really more of same in Washington as it continues the notion that there are no consequences to a federal deficit in the trillions of dollars.
Unemployment insurance is no longer an insurance program funded by employers. It is now a long term entitlement funded by tax dollars to a large extent. The Social Security payroll tax is going to be temporarily reduced in 2011...but might there not be pressure to make that cut permanent even though the program it supports teeters on insolvency.
Deficits may not mean anything as money is only tangible because of our social contract to use the pieces of paper and metal to keep each other working and feeding one another. The tax compromise may be good politics, but it points us towards the day when the money we revere is worth nothing. Lets hope that's not too soon.
State of Politics Blog
2 comments:
It is important to get the truth out there that this does not effect most upper income people because their income is not "earned income". Like when PJ develops a property he should not pay earned income rates he pays the much lower Buffet and Mance rates.
I hate to split (heirs) again but the unemployment entitlement is being paid for with our grandkids' future tax dollars not tax dollars that exist yet.
We need to work that deficit word into peoples minds too. Hardly anyone seems to no the difference between the deficit and the debt or talk about the importance of the difference.
Cumo should practice what he preaches and reduce taxes in NY for upper incomes. Then apologize to Golisano on behalf of the state and invite him back as a resident. And offer him a position in the administration.
What was, at first, a negotiation on the Bush tax cuts has turned into a second stimulus package with no regard for the deficit. A bill in which everyone gets something is a politician's dream. I believe that the economy needs an additional boost but tax cuts are not the most efficient means of stimulating jobs. This is especially true for the tax cuts going to the wealthiest, many of whom will buy U.S. treasuries so we can pay them back with interest. Let's hope the next big compromise actually addresses the budget deficit to some degree.
Post a Comment