Tax fight has interesting twist - some Dems against Obama
President Obama is proposing extending the Bush era tax cuts for one year, but only for those couples making less than $250,000 and singles less than $200,000. It's all a matter of "fairness" in his political mind.
What may seem strange to some is that he is opposed by two of the more liberal Democrats, Nancy Pelosi and Chuck Schumer, who support extending the cuts for everyone who earns up to $1 million. To understand that one must look at the areas of the country that they represent.
One of the least fair and mind-numbingly frustating aspects of the tax code is that there is little in the laws that is inflation-adjusted(see AMT) and nothing in the laws that allows for cost of living differences in various areas of the country. This is a big deal in areas of states like New York and California.
While $1 million may or may not be the right number in the eyes of many, $250,000 does not qualify anyone in metropolitan New York as anything other than solid middle class. First, this is a state with a 9% top state income tax, an 8 3/4 % sales tax, and high state and local property taxes(that are nixed by AMT for many as a deduction). For a family of four to live an area with a least an average and relatively safe school district, the cost of buying or renting a home would be mind boggling to people in many parts of our country. While a car is generally necessary to take care of basic chores, mass transit is also necessary to get to many places in an efficent manner. It is not cheap.
The point is that Pelosi and Schumer represent areas in which $250,000 may seem like a nice income, and it certainly is, but is not the cut-off to being viewed as rich or even close to being seen in that way. That's why these generally viewed as liberal members of Congress are standing up to the Chicago pols view of "fairness".
What may seem strange to some is that he is opposed by two of the more liberal Democrats, Nancy Pelosi and Chuck Schumer, who support extending the cuts for everyone who earns up to $1 million. To understand that one must look at the areas of the country that they represent.
One of the least fair and mind-numbingly frustating aspects of the tax code is that there is little in the laws that is inflation-adjusted(see AMT) and nothing in the laws that allows for cost of living differences in various areas of the country. This is a big deal in areas of states like New York and California.
While $1 million may or may not be the right number in the eyes of many, $250,000 does not qualify anyone in metropolitan New York as anything other than solid middle class. First, this is a state with a 9% top state income tax, an 8 3/4 % sales tax, and high state and local property taxes(that are nixed by AMT for many as a deduction). For a family of four to live an area with a least an average and relatively safe school district, the cost of buying or renting a home would be mind boggling to people in many parts of our country. While a car is generally necessary to take care of basic chores, mass transit is also necessary to get to many places in an efficent manner. It is not cheap.
The point is that Pelosi and Schumer represent areas in which $250,000 may seem like a nice income, and it certainly is, but is not the cut-off to being viewed as rich or even close to being seen in that way. That's why these generally viewed as liberal members of Congress are standing up to the Chicago pols view of "fairness".
posted by John Borden at 11:53 AM
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