Just a quick note. Everyone in Washington is happy to let the payroll tax holiday expire. This includes (probably especially) the Republicans. That will be a rise of 2% in total wages taken in taxes. There are no deductions. Nothing is returned at the end of the year.
Yet the “reasonable” Republicans can’t accept taxes to go up by even two percentage points on incomes over $250,000 per year. Note that these earnings are subject to no payroll taxes. None!
That’s the Republican Party all over. In fact, that’s the old Republican Party. That’s the party that is still fairly reasonable by modern GOP standards. A 2% of total wages increase in taxes on the middle class? No problem! A two percentage point increase in taxes on the rich? No way!
The difference between these two figures is that the increased net tax rate on the poor would be at least as large and probably notably larger than that for the rich. But just assume they are the same. This is an outrage even under the best circumstances.