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Frank Bernheisel: The View From Here
Frank Bernheisel
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Frank Bernheisel
Posted 07.14.12
Just Outside Washington

FRANK BERNHEISEL

Tax cuts and class warfare

The Republicans, both in public office and wannabes, are calling for the tax cuts from the Bush administration to be made permanent. (They are due to expire on December 31, 2012.)

President Obama has proposed that the tax cuts be renewed for incomes of $250,000 or less, which the Republicans are calling class warfare.

My position for some time has been: Let the entire Bush tax cut expire. However, let's make one thing clear.

If President Obama's proposal passes Congress and is signed into law, people with incomes over $250,000 will benefit.

The marginal tax rate that is changed by the law applies to income, not to people. Therefore, no matter how much income a person makes -- Jamie Dimon made $42 million in 2010 according to Reuters -- the Obama proposal tax cuts would apply to all taxable income under $250,000.

So under President Obama's plan, everyone -- including Jamie Dimon -- will receive the tax cut on income up to $250,000. Jamie Dimon will receive the tax cut on his first $250,000 of income.

This leaves me with a question: How can President Obama's tax cut proposal be Class Warfare if everyone gets the same tax cut?

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