The Brain Dead GOP Meets Obama’s 39.6%, and Raises Him 1.4%

If ever there was a political party that deserved to lose an election, it was the brain dead GOP of 2012.  The party that thinks the fact that 47% of the public pays no income taxes means that 47% of the public pays no income taxes EVER.  (Do these people not have 19 year olds in college, or 75 year old parents on Social Security?)

Now the brain dead GOP has shown its skill at high stakes poker by countering Obama’s offer of a 39.6% high rate, with a counter-offer of 41.0%.  Let’s put aside the fact that the brain dead GOP doesn’t even seem to know that Obama’s actually proposing a 43.4% top rate, which means the brain dead GOP counter is 44.8%, or 53% in Sweden err California.

The brain dead GOP CLAIMS to favor a flat tax.  A simple tax system with no loopholes and lower rates.  So why aren’t they proposing a $50,000 cap on deductions?  I think you know the answer.  The GOP isn’t just brain dead, it’s also corrupt.

The brain dead and corrupt GOP also claims to be the party of family values.  So have you seen any proposals to eliminate the marriage penalty?  Neither have I.

We are likely to end up with a much inferior tax system next year, and the Democrats and the brain dead GOP deserve equal blame on this one.

Oh and I forgot; how about Bush’s brilliant idea to make the 2001 tax cut temporary, knowing he could always go back and make it permanent next time?  How’s that workin out for ya?  And how about the brain dead GOP decision not to negotiate seriously in 2011, figuring they could get a better result after the election that Karl Rove and Dick Morris assured them they would win?  How’s that decision looking right now?

PS.  I got this link from Matt Yglesias, but I think he may have misinterpreted the NYT article.  The 41% rate comes mostly from the phase in of the 35% tax on all income.  This seems to involve a 5% phase in, plus another 1% to cover the phase in of the removal of the standard deduction (another stupid idea.)

Did I remember to mention that the GOP is brain dead?

Here’s what a non-brain dead tax system would look like:

  1. No income or corporate income or death taxes.
  2. A 20% VAT with a lump sum rebate to each family, assuring that no VAT is paid on poverty level consumption.
  3. A steeply progressive payroll tax that has negative rates (EITC) for low wage workers over 18.  All income earned by workers in the financial industry is assumed to be wage income unless they can prove to the IRS that it did not result from their skill at allocating capital.  In other words average people like me with regular jobs would pay no tax on interest and dividends and capital gains on non-managed assets.

If you put a bunch of liberal and conservative tax experts in a room they could produce a tax system roughly as progressive as Obama is proposing and far more efficient within 10 minutes.  Other countries have done this. It won’t happen because America is a brain dead and corrupt country.

End of rant . . . Happy Thanksgiving!

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About Scott Sumner 492 Articles

Affiliation: Bentley University

Scott Sumner has taught economics at Bentley University for the past 27 years.

He earned a BA in economics at Wisconsin and a PhD at University of Chicago.

Professor Sumner's current research topics include monetary policy targets and the Great Depression. His areas of interest are macroeconomics, monetary theory and policy, and history of economic thought.

Professor Sumner has published articles in the Journal of Political Economy, the Journal of Money, Credit and Banking, and the Bulletin of Economic Research.

Visit: TheMoneyIllusion

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