Obama Tax Policy

This Wall Street Journal article analyzes the Obama argument to "roll back the Bush tax cuts" on wealthy tax payers.  While this is a partisan piece, it offers enlightenment on one way taxes and politics work.

The key paragraphs from the hedgehog party perspective are as follows:

"Going back to the tax rates of the 1990s doesn't mean that households will pay 1990s taxes. Because the tax brackets haven't risen along with incomes, average taxes would be significantly higher, and grow each year.

If the tax cuts expire, income-tax revenues by 2018 will rise to 10.8% of the total economy from 8.7% today – an increase of 24%. Compared to the average over the last 50 years, allowing the rates to rise would increase tax revenues by 32%."

Inflation fueled bracket creep has always been a cheap "out" for politicans.  Higher taxes with no registered vote.  There is really no way for voters to call politicians to account without the simplification of the tax code.  Without simplification, the well connected rats from the left and right cash in.