Hey, Charlie Rangel loves me and he loves most other economics professors too. Via Greg Mankiw (who is probably a bit too wealthy to feel the Charlie love) comes word that in Rangel's new tax plan: those making between $75,000 and $500,000, would receive much more substantial tax cuts. Those in the $200,000 to $500,000 range, who are in the 96 to 99 percentile of the income distribution, would get a tax cut of about $3,600 per year.
This is according to work done by the Tax Policy Institute. Who pays? The top 1 percent, those making over $500,000, would pay substantially more in taxes. Those making more than $1 million would see their tax bill rise by an average of more than $100,000.
Having already been hit by the AMT the last two years, I am strangely A-OK with this!!!
Don't get me wrong, I'm on record saying that 10% of GDP is a nice number for funding all governmental activity in the US. But since a tax change/increase is surely going to come in 09, Mr. Rangel has done me the supreme favor of taxing the fella behind the tree (er, sorry Greg)!