Tax Policy Center's analysis of Herman "Koch" Cain's proposal

[ProSense]

Via Krugman

<...>



Howard Gleckman summarizes:

A middle income household making between about $64,000 and $110,000 would get hit with an average tax increase of about $4,300, lowering its after-tax income by more than 6 percent and increasing its average federal tax rate (including income, payroll, estate and its share of the corporate income tax) from 18.8 percent to 23.7 percent. By contrast, a taxpayer in the top 0.1% (who makes more than $2.7 million) would enjoy an average tax cut of nearly$1.4 million, increasing his after-tax income by nearly 27 percent. His average effective tax rate would be cut almost in half to 17.9 percent. In Cain’s world, a typical household making more than $2.7 million would pay a smaller share of its income in federal taxes than one making less than $18,000. This would give Warren Buffet severe heartburn.

[denverbill]

1. I'm still waiting for the Freepers to figure this out.

I'd be willing to bet 90% of them would see their taxes go way up since they'll lose deductions for children, spouses, 401Ks, mortgage interest, etc.

[MrModerate]

2. The impulse toward self-preservation . . .

— by which I mean a sensible and thoughtful defense of one's economic interests — seems to be wholly supressed in FReeperland.

They also don't get that generosity actually benefits everyone, giver and receiver alike.

[ProSense]

3. Great charts:

Jared Berstein