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View Diary: Why are Republicans calling for more tax revenue but not higher tax rates? (81 comments)

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  •  Massive redistribution towards the wealthy (5+ / 0-)

    Romney gave away his cards in a subtle debate remark. This is still the Republican plan. He said that he wanted the rich to pay at least as large a share of the total income tax collected, but lower their tax rate in the process.

    Now there's always "dynamic rating", the farce behind the Laffer (laugh at it) curve, wherein tax cuts necessarily spur massive economic growth.  But nobody buys this any more.  Even the Banana Republicans have trouble with it.

    But if you lower tax rates on the rich, they will still pay the same total if they get a larger share of total income.  So just keep pumping up their pay, cut everyone else's, and they can have top rates lowered and still pay their share.  After all, 90% of the country will have so little money left that they can't pay much.

    However, the Hubbard plan does not depend on that, since he's not making the same promise.  Rather, by cutting the deductions used by middle-class families (home interest, education, medical, charitable) but treating the favorable rates on unearned income (dividends, capital gains) as a "rate" rather than as as deduction, then the very rich keep their Bush gifts and the middle class, especially those in the high-housing-cost coastal states, are royally screwed.  Again it's a redistribution of income from the middle class to the truly wealthy.

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