Robbin' Hoods

The president signaled in his campaign that he would support addressing the retirement system’s looming financing shortfall, in part by applying payroll taxes to incomes above $250,000. But that would ignite intense opposition from Republicans, especially with the economy deep in recession.

Consider too that the super-rich collect most of their income from investments - and investment and corporate income is taxed differently (lower) than earned income - so BHO's plan to tax those "rich folks" making 250K is not going to touch the wealthy elite. Obama today says he will allow the "Bush tax cut for the rich" to expire as scheduled in 2010, but wait and see on that one.

"There were ... 132.6 million tax returns filed in 2005 that had a positive AGI, not just the returns from people who earn enough to owe taxes. From other IRS data, we can see that 90.6 million of the tax returns came from people who paid taxes into the Treasury. That leaves 42 million tax returns filed by people with positive AGI who used exemptions, deductions and tax credits to completely wipe out their federal income tax liability. Not only did they get back every dollar that the federal government withheld from their paychecks during 2005; but some even received more back from the IRS. This is a result of refundable tax credits like the Earned Income Tax Credit." (EIC, or the yearly bribe to the miscreant and/or poor so they don't revolt.)

Earning $250K today puts you in the top 1 or 2 or 5% of earners, depending on who and which stats you look at. Many folks in the remaining 95% believe more taxation on those at $250+K is a good idea.

Consider this though - the majority of these $250K earners are two income earner households, who may be living better than you, but they are nowhere near club members of the wealthy elite. And not everyone earning $250K is corrupt and feeding at the public trough; most are not hiding assets in offshore banks. Many of them are small business owners - not multinationals living off government contracts and nepotism. They are the upper middle class, the largest group of taxpayers, standing between the über-rich and the nonworking/working class poor. But, as in all backward nations, there can only be two classes - rich/poor - so let us hurry and rid ourselves of these upper middles.

The problem in not that taxes are too low on income earners of $250,000 - the problem is government spending. Only the village idiot would think it's a good idea to raise taxes on wage earners and give the government more funds; the village idiot is always convinced these funds will trickle down to him.